(Bloomberg) — Intel Corp. (INTC) is in advanced talks to acquire artificial intelligence chip startup SambaNova Systems Inc. for about $1.6 billion including debt, according to people familiar with the matter.
A deal for Palo Alto, California-based SambaNova (SANS.PVT) could come together as soon as next month, said the people, who asked not to be identified because the information is confidential.
While the discussions are advanced, the terms and the timing could change, the people said. It’s also possible that SambaNova, which has signed term sheets with other would-be financial investors, could opt to pursue another path, they added.
Representatives for Intel and SambaNova declined to comment.
Founded in 2017 by Stanford University professors, one of whom had won a MacArthur Genius Award, SambaNova designs custom AI chips, aiming to rival those offered by Nvidia Corp.
Intel Chief Executive Officer Lip-Bu Tan is chairman of SambaNova. His venture capital firm Walden International was one of the company’s founding investors, having led a $56 million Series A round in 2018.
At $1.6 billion, an acquisition of SambaNova would deliver Intel a long-sought platform to help build out its AI product offering — and at a discount. SambaNova was valued at $5 billion in 2021 in a $676 million funding round led by SoftBank Group Corp.’s Vision Fund 2.
Intel’s stock has been on a tear since the US government said in August it would take a 10% stake in the chipmaker. The shares, which have gained about 60% since before that announcement, fell 4.3% to $37.81 Friday in New York trading, giving the company a market value of $180 billion.
