Intel Nears Completion of $1.6 Billion Acquisition of AI Chip Startup SambaNova

Intel is reportedly on the verge of finalizing the acquisition of SambaNova, a leading developer of artificial intelligence (AI) chips, for approximately $1.6 billion. Multiple US media outlets have indicated that the deal is close to completion, following initial speculation that surfaced in November 2025.

SambaNova, founded in 2017, specializes in designing advanced chips tailored for AI applications, with a particular focus on inference tasks within data centers. The company has quickly established itself as a significant player in the AI hardware sector, aiming to accelerate AI computations with innovative circuit architectures distinct from conventional graphics processing units (GPUs) produced by industry giants such as AMD and Nvidia.

The transaction is expected to be finalized in the coming weeks, potentially coinciding with the Consumer Electronics Show (CES) in Las Vegas, one of the largest technology industry events in the United States. Sources familiar with the matter suggest that the agreement includes the complete acquisition of SambaNova by Intel, enabling the technology giant to consolidate its position in the rapidly evolving AI chip market.

Despite SambaNova's previous valuation of $5 billion in 2021, Intel appears set to obtain the company at a substantially lower price. This discrepancy may be attributed to the intertwined relationships between the two firms. Intel's venture arm, Intel Capital, has previously invested in SambaNova, and key executives hold significant positions in both organizations. Additionally, other major investors in SambaNova, such as SoftBank, have also established financial ties with Intel. These connections could have influenced the favorable terms of the acquisition for Intel.

SambaNova's technology is already integrated into various AI ecosystems, including partnerships with platforms like Hugging Face. The company's chips are engineered to optimize specific segments of AI development, offering an alternative to traditional GPU-based solutions. This approach allows for enhanced efficiency in data center operations, particularly for enterprises seeking specialized AI inference capabilities.

The move aligns with Intel's broader strategy to expand its footprint in the AI and high-performance computing sectors. As the demand for tailored AI hardware continues to grow, the acquisition is anticipated to bolster Intel's product portfolio and strengthen its competitive edge against established and emerging rivals in the semiconductor industry.

Industry analysts note that the consolidation of SambaNova's expertise and intellectual property could accelerate Intel's efforts to develop next-generation AI accelerators. The acquisition is also seen as a response to increasing competition from companies developing proprietary hardware for AI applications, as organizations worldwide invest heavily in AI-driven technologies.

The deal underscores the ongoing trend of major technology firms acquiring innovative startups to secure advanced capabilities and maintain leadership in fast-changing markets. For Intel, integrating SambaNova's specialized AI chip technology is expected to enhance its offerings for data center customers and support the company's ambition to play a central role in the future of AI infrastructure.

Upon completion, the transaction is likely to have a significant impact on the AI hardware landscape, potentially prompting further mergers and acquisitions as companies race to secure technological advantages in the field of artificial intelligence.