Intel to Acquire AI Chip Startup SambaNova Systems

Intel has signed a non-binding term sheet to acquire AI chip startup SambaNova Systems, a move signaling Intel’s continued investment in artificial intelligence hardware. The deal, first reported in late October 2025, could be worth less than the $5 billion valuation SambaNova reached in April 2021 [Wired].

Deal Details and Timeline

The acquisition is not yet finalized and requires regulatory approval, liability scrutiny and financial due diligence, a process that could take weeks or months [Wired]. The term sheet is non-binding, meaning either party can withdraw without penalty.

Key Players and Existing Relationships

Notably, Intel CEO Lip-Bu Tan also serves as the executive chairman of SambaNova Systems [Reuters], [Reddit]. Intel Capital, which is in the process of becoming a stand-alone fund, has previously invested in SambaNova [Wired]. SoftBank Group, an investor in SambaNova, also made a significant investment in Intel earlier in the year.

SambaNova Systems: Background

Founded in 2017 in Palo Alto, California, by Kunle Olukotun, Rodrigo Liang, and Christopher Ré, SambaNova Systems develops an AI chip platform focused on inference computing – the process of using large language models to make predictions from data [Wired]. As of early 2025, the company had raised $1.14 billion in funding, including a $250 million round in 2020 from investors like BlackRock, Intel Capital, and GV [Wired].

Strategic Implications

This acquisition represents a significant step in Intel’s strategy to expand its presence in the rapidly growing AI chip market. The move comes as Vista Equity Partners and Intel are leading a new investment in SambaNova [Reuters].

SambaNova declined to comment on the acquisition. Intel has not yet responded to requests for comment [Wired].