According to persons familiar with the situation, Intel Corp. (INTC) is in advanced negotiations to purchase artificial intelligence chip firm SambaNova Systems Inc. for roughly $1.6 billion, including debt.
According to the persons, who wished to remain anonymous due to the confidentiality of the material, a deal for Palo Alto, California-based SambaNova (SANS.PVT) might be finalized as early as next month.
The people stated that even if the talks are advanced, the terms and the timetable could alter. Additionally, they stated that SambaNova, which has inked term sheets with other potential financial backers, can decide to take a different course.
SambaNova and Intel representatives declined to comment. In an effort to compete with Nvidia Corp.'s AI chips, SambaNova was founded in 2017 by Stanford University professors, one of whom had received a MacArthur Genius Award.
SambaNova's chairman is Lip-Bu Tan, CEO of Intel. Walden International, his venture capital firm, sponsored a $56 million Series A investment in 2018 and was one of the company's original investors.
A $1.6 billion acquisition of SambaNova would provide Intel with a long-needed platform to expand its AI product line at a reduced cost. In 2021, SoftBank Group Corp.'s Vision Fund 2 led a $676 million investment round that valued SambaNova at $5 billion.
Since the US government announced in August that it would acquire a 10% share in the chipmaker, Intel's stock has surged. The company's market worth was $180 billion after the shares, which had increased by around 60% since the announcement, dropped 4.3% to $37.81 on Friday in New York trading.
