Intel Moves Closer to Acquiring AI Chip Startup SambaNova, Signs Term Sheet: Report 

Intel has moved forward in its plan to acquire AI chipmaker SambaNova Systems by signing a term sheet with the Palo Alto–based startup, WIRED reported.

The preliminary document is non-binding, and the deal remains subject to regulatory review, due diligence and financial scrutiny—processes that could take weeks or months to conclude.

While negotiations are advancing, the specific terms remain undisclosed, the report added. 

Intel’s interest in the company was first revealed in October, when Bloomberg reported that early discussions were underway and that SambaNova could be valued below its 2021 peak of $5 billion.

The potential acquisition raises governance questions because Intel CEO Lip-Bu Tan is also the chairman of SambaNova. Intel Capital, now being spun out as an independent fund, is also an investor in the startup.

SoftBank, another major SambaNova backer, made a substantial investment in Intel earlier this year, deepening the web of cross-holdings.

SambaNova, founded in 2017 by Stanford professors Kunle Olukotun and Christopher Ré, along with former Oracle executive Rodrigo Liang, builds hardware and systems for AI inference workloads. The company has raised more than $1.14 billion to date, including major rounds led by BlackRock, GV, Intel Capital and SoftBank’s Vision Fund 2. 

Its valuation, however, has fluctuated after hitting $5 billion in 2021. Recent disclosures suggest investors have marked down their holdings, with BlackRock reportedly cutting its valuation by 17% over the past year, according to The Information.

The downturn may have made SambaNova a more attractive target for Intel, which has struggled to keep pace with NVIDIA and other rivals in AI chip performance.

Intel has also received an $8.9 billion boost from the US government in August to expand domestic manufacturing. 

Since taking over earlier this year, Tan has set out an AI-first strategy that includes reducing debt, selling non-core units, and improving Intel’s position in advanced semiconductor technology.

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