Facing immense pressure from dominant rivals in the AI hardware space, Intel is reportedly engaged in advanced discussions to acquire SambaNova Systems for approximately $1.6 billion, including debt. While no final agreement has been reached, sources indicate that the deal could conclude within the coming weeks. Source: Bloomberg. This potential acquisition stands out not only due to its financial scale but also because of the long-standing ties between Intel's CEO, Lip-Bu Tan, and the AI startup.
This move comes as Intel intensifies its push into the artificial intelligence hardware sector. Although best known for its central processing units (CPUs), Intel has lagged behind competitors like Nvidia, which leads in specialized chips optimized for training and running large-scale machine learning models. Acquiring SambaNova would grant Intel immediate access to a custom AI chip architecture and an integrated software stack—both engineered specifically for high-throughput inference workloads, where trained AI models are deployed for real-world applications.
In its early years, SambaNova attracted major investors and raised substantial capital during the 2021 venture funding boom, reaching a peak valuation of around $5 billion. However, as investment conditions tightened and competition in AI semiconductors intensified, the startup’s valuation declined. For Intel, the reported acquisition price represents a discounted entry point compared to SambaNova’s previous private valuation, offering a fast-track route to expand its AI capabilities without years of internal R&D.
A notable aspect of this potential deal is the dual role played by Intel’s CEO, Lip-Bu Tan. In addition to leading Intel, Tan currently serves as chairman of SambaNova’s board and has historical ties to the company through his venture capital firm, Walden International, an early backer of the startup. While this alignment may ensure strategic continuity, it also invites scrutiny regarding governance and potential conflicts of interest, especially as stakeholders assess how overlapping leadership might influence the transaction’s trajectory.
The timing is particularly crucial for Intel, which faces mounting financial and operational challenges. The company reported a $2.9 billion loss in Q2 2025 and has announced plans to cut approximately 15% of its global workforce—around 15,000 employees—and delay key chip development projects. Meanwhile, the U.S. government’s recent $8.9 billion investment in Intel via the CHIPS Act and Secure Chips Program, securing a 10% stake in the company, underscores the intense competitive pressures Intel faces from industry leaders such as TSMC, AMD, and Nvidia.
