Intel nears $1.6B acquisition of AI start-up SambaNova
What's the story
Intel is reportedly close to acquiring artificial intelligence (AI) start-up SambaNova Systems in a deal worth $1.6 billion, including debt. The transaction has not been made public yet and could be initiated as early as next month, although the specifics and timing may vary.
Strategic options
SambaNova's potential alternative paths
SambaNova has also signed term sheets with other potential financial investors, leaving open the possibility of pursuing an alternative path. The Palo Alto-based start-up specializes in designing custom AI chips and was valued at $5 billion in 2021 after a $676 million funding round led by SoftBank Group's Vision Fund II.
Strategic enhancement
Acquisition to bolster Intel's AI capabilities
The acquisition of SambaNova would greatly boost Intel's AI portfolio. The deal would give the tech giant a long-sought platform at a fraction of the start-up's earlier valuation. Notably, Intel CEO Lip-Bu Tan is also SambaNova's chairman. His venture capital firm, Walden International, was one of the company's initial investors and led a $56 million Series A funding round in 2018.