Intel in talks to acquire this AI chipmaker
What's the story
Intel is reportedly in preliminary talks to acquire artificial intelligence (AI) chipmaker SambaNova Systems. The discussions are at an early stage, and no deal has been finalized yet, according to Bloomberg. If the acquisition goes through, it could be valued below the $5 billion mark SambaNova reached during its 2021 funding round.
Business evolution
SambaNova's focus on AI cloud services
Founded in 2017 by Stanford University professors, SambaNova designs custom AI chips to compete with NVIDIA Corp's offerings. The company has also shifted its focus from selling hardware to providing AI cloud services on its own infrastructure. This strategic move comes as the AI processor space continues to grow rapidly with the rise of generative AI technologies like ChatGPT.
Funding history
Funding and valuation of SambaNova
SambaNova has witnessed significant financial backing since its inception. In 2018, Walden International, a venture capital firm led by Lip-Bu Tan, invested in the company during its $56 million Series A funding round. The startup also raised $676 million in a 2021 funding round led by SoftBank Group Corp., valuing it at $5 billion at the time.
Market re-entry
Intel's push into AI market
Intel has been making strategic moves to strengthen its position in the AI market. The company plans to re-enter the AI GPU space next year with a new graphics processing unit (GPU). This comes after previous attempts to penetrate the AI GPU market with cost-effective alternatives to NVIDIA's top-tier processors failed to yield the desired results.