Intel Nears Deal to Acquire AI Chip Startup SambaNova
Semiconductor giant Intel is in advanced discussions to acquire SambaNova Systems, a leading AI chip startup, in a multi-billion-dollar deal that could reshape the AI hardware landscape, according to unnamed sources.
Why SambaNova is a Strategic Target
Founded in 2017 by Stanford professors Kunle Olukotun and Chris Ré, along with Rodrigo Liang, SambaNova has become a key contender in AI acceleration. The startup specializes in chips and software optimized for AI workloads, particularly for enterprise and data center applications. Its flagship DataScale system is a direct competitor to offerings from Nvidia and AMD.
For Intel, which has been trailing rivals in the AI chip race, acquiring SambaNova could provide:
– Advanced AI hardware to complement its existing portfolio
– Proprietary software to challenge Nvidia’s CUDA dominance
– A stronger foothold in the booming generative AI market
Intel’s Push to Dominate AI Hardware
Under CEO Pat Gelsinger, Intel has aggressively expanded its AI capabilities through:
– Gaudi AI accelerators (rivals to Nvidia’s H100 GPUs)
– Core Ultra processors with built-in AI features
– Foundry services to manufacture third-party AI chips
Despite these efforts, Nvidia still controls ~80% of the AI hardware market. A successful SambaNova acquisition could help Intel close the gap.
Potential Challenges and Market Impact
- Investors: SambaNova’s backers (SoftBank, Google Ventures) may see this as a lucrative exit.
- Competitors: Nvidia, AMD, and startups like Cerebras could face stiffer competition.
- Regulators: Antitrust scrutiny is possible, though Intel’s AI market share remains small.
What Comes Next?
While neither company has confirmed the talks, sources suggest a deal could be announced within weeks. If finalized, this would be Intel’s largest AI acquisition since its $2 billion purchase of Habana Labs in 2019.
The move underscores the intensifying battle for AI supremacy, with chipmakers scrambling for an edge in hardware and software.
