Intel in Talks to Acquire AI Chip Unicorn SambaNova at Deep Discount

According to multiple media reports on December 13, Intel is in advanced negotiations to acquire U.S.-based AI chip unicorn SambaNova Systems for approximately $1.6 billion, including debt. The transaction could be finalized as early as next month, although the outcome remains uncertain.

If completed at the reported price, the deal would represent a dramatic valuation reset. SambaNova Systems was last valued at $5 billion, highlighting the growing pressure facing AI hardware startups amid intense competition and capital constraints.

Sources familiar with the matter added that SambaNova has also signed term sheets with other potential financial investors, suggesting Intel is not the only party at the table.

🦄 SambaNova Systems: Background and Funding History

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Founded in 2017, SambaNova Systems focuses on AI accelerator platforms optimized primarily for inference workloads rather than large-scale training.

• Founders:
  • Kunle Olukotun – Stanford professor and pioneer of multicore processors
  • Christopher Ré – Stanford professor specializing in data-centric AI
  • Rodrigo Liang – Former Oracle executive and current CEO

According to PitchBook, SambaNova had raised approximately $1.14 billion by early 2025:

• 2020: $250 million round, valuing the company at $2.5 billion
• 2021: $676 million round led by SoftBank Vision Fund 2, lifting the valuation to $5 billion

At its peak, SambaNova was widely viewed as one of the most promising challengers in the AI accelerator space, competing indirectly with NVIDIA, AMD, and custom ASIC solutions.

🤝 Intel’s Strategic Interest and Leadership Links

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Intel’s reported interest in SambaNova is closely tied to leadership and strategic realignment.

• Executive Connection: Intel CEO Chen Liwu (Charles Liang) currently serves as Chairman of SambaNova Systems. His venture capital firm, Walden International, was an early backer and led SambaNova’s $56 million Series A round in 2018.
• Strategic Reset: Since assuming the CEO role earlier this year, Chen has emphasized:
  • Improving Intel’s balance sheet and debt structure
  • Divesting non-core assets
  • Refocusing the company around an AI-first roadmap

Acquiring SambaNova could allow Intel to quickly absorb an existing AI inference platform rather than relying solely on internal development.

💰 A “Bone-Fracture” Valuation Reset

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At an estimated $1.6 billion, the acquisition price represents a steep discount—often described in Chinese media as a “bone-fracture price” (打骨折)—relative to SambaNova’s prior $5 billion valuation.

Industry observers believe Intel may view this as an opportunity to:

• Integrate SambaNova’s AI inference architecture
• Strengthen its AI product portfolio
• Gain experienced AI system-level engineering talent at a reduced cost

Such a move would be consistent with Intel’s broader shift away from direct, capital-intensive competition in AI training GPUs toward more targeted and pragmatic AI deployments.

🔍 Outlook

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Neither Intel nor SambaNova Systems has commented publicly on the reported negotiations. Whether the deal proceeds—or is ultimately outbid by financial investors—remains to be seen.

Regardless of the outcome, the situation highlights a broader trend: AI chip startups are facing sharp valuation corrections, even as strategic buyers like Intel look to selectively acquire capabilities rather than build everything in-house.