Intel Corporation is in advanced negotiations to acquire artificial intelligence chip startup SambaNova Systems for approximately $1.6 billion, including debt, with a potential deal closure as early as next month. Sources indicate discussions are well-developed, though final terms and timing remain subject to change.
SambaNova, founded in 2017 by Stanford University professors, designs custom AI chips that compete directly with industry leader Nvidia. The acquisition would provide Intel with a ready-made, full-stack AI platform for enterprise appliances—a market segment currently dominated by Nvidia's DGX systems and Groq's offerings, where Intel lacks a presence.
The reported $1.6 billion price tag represents a steep 68% discount from SambaNova's 2021 valuation of $5 billion, achieved during a $676 million funding round led by SoftBank's Vision Fund 2. The startup is also considering alternative paths, having signed term sheets with potential financial investors, and could opt not to sell.
A significant connection facilitating the deal is the shared leadership between the two companies. Intel CEO Lip-Bu Tan serves as the executive chairman of SambaNova, and his venture capital firm, Walden International, was an early investor, leading a $56 million Series A round in 2018. Furthermore, SoftBank, which took a stake in Intel earlier in 2025, is also an investor in SambaNova, creating a tightly interconnected capital structure.
The strategic move aims to accelerate Intel's lagging position in the fast-growing AI chip market. SambaNova has already established client traction in high-value sectors including finance, healthcare, defense, and government operations, which seek secure, on-premise AI infrastructure. Acquiring the company would grant Intel immediate access to its custom chip designs, engineering talent, and proven technology.
Intel's stock has surged roughly 60% since August 2025, when the U.S. government announced plans to take a 10% stake in the chipmaker. As of December 12, 2025, Intel shares traded at $38.63, delivering a strong 92.52% year-to-date return. The company's market valuation stands at approximately $180 billion.
Both Intel and SambaNova representatives have declined to comment on the acquisition talks. Any finalized deal would be subject to regulatory clearance and is viewed as a pivotal strategic shift for Intel as it seeks to strengthen its relevance in the global AI hardware race.
