Santa Clara, USA: Intel Corporation, the now struggling chipmaker that hasn’t been able to keep pace with the times, is now looking at an acquisition to revive its prospects with a $5 billion acquisition. SambaNova Systems, a US-based AI chip startup, specialises in creating custom digital infrastructure for organizations looking to use popular generative AI models independently.
Founded in 2017, this Palo Alto, California-based company has reportedly struggled to raise funds for its expansion, despite having raised funds from leading investors such as Intel Capital, BlackRock, and SoftBank Vision Fund.
One of the main backers of the company has been Intel’s new CEO Lip-Bu Tan, who has invested in it through his firm Walden International. For Intel, this could be a gamechanger acquisition, especially as SambaNova’s proprietary systems could eventually complement Intel’s current portfolio of products, especially for the long term.
If the discussions are fruitful, this could help the company reclaim its position as the topmost chipmaker, after it lost out to Nvidia and TSMC as the chipmaker powering the world’s electronics. For the US, Intel has been a source of pride in its technological prowess, with its recent downfall drawing concern from all quarters, including US President Donald Trump. In August, the US President announced the unusual step of investing in the privately-held company, mostly to revive its long-delayed, $31 billion chip fabrication plant in Ohio. Following this, SoftBank CEO Masayoshi Son also invested $2 billion in the struggling chipmaker, ostensibly to reduce dependence on Nvidia, while also offering the company a lifeline after it suffered a massive $16.6 billion loss in 2024.
As of now, there is no clarity on how Intel aims to finance this transaction, as there hasn’t been an official statement from Intel or SambaNova yet. Representatives from both companies have declined to comment. Stakeholders are waiting with bated breath for an update here, as the stakes are high for Intel and its revival plans.
