Intel Corporation has taken a significant step toward acquiring AI chipmaker SambaNova Systems, signing a non-binding term sheet with the Palo Alto–based startup, WIRED reported. While the agreement signals that negotiations are advancing, the deal remains contingent on due diligence, regulatory approvals and financial evaluations that could continue for several weeks or even months.
The potential acquisition unfolds at a sensitive moment for both organizations. A key point of scrutiny is that Intel CEO Lip-Bu Tan also serves as chairman of SambaNova, raising governance concerns as the two companies move closer to a formal deal. Intel Capital is already an investor in SambaNova, adding another layer of complexity to the transaction.
Founded by Kunle Olukotun, Christopher Ré and Rodrigo Liang, SambaNova has positioned itself as a major contender in the AI hardware race. The company has raised more than $1.14 billion from prominent investors such as BlackRock, GV (Google Ventures), Intel Capital and SoftBank Group Corp.’s Vision Fund 2. Despite its strong backing, SambaNova’s valuation has fallen since reaching a $5 billion peak in 2021, reflecting broader market recalibrations in the AI hardware sector.
For Intel, the pursuit of SambaNova underscores the company’s intensified AI-first strategy under Tan’s leadership. The chipmaker is under growing pressure to narrow the performance gap with rivals like NVIDIA, particularly as AI models require increasingly powerful and efficient computing systems. The U.S. government’s recent $8.9 billion funding boost for domestic semiconductor manufacturing further strengthens Intel’s position to pursue strategic acquisitions that support national AI and chipmaking priorities.
Additionally, SoftBank’s deepening ties with Intel add momentum to the potential deal, making SambaNova an increasingly attractive target. As Intel works to re-establish its leadership in next-generation compute infrastructure, integrating SambaNova’s hardware and systems could provide a critical advantage.
While the agreement is not yet binding, Intel’s move signals a strong intent to expand aggressively in AI hardware. If completed, the acquisition could reshape the competitive dynamics of the global AI chip industry and accelerate Intel’s path toward reclaiming technological and market leadership.
