Intel, seeking to challenge Nvidia’s dominant position in the artificial intelligence chip market, is preparing to acquire one of Silicon Valley’s well-known startups, SambaNova Systems. According to Bloomberg, Intel has allocated approximately $1.6 billion for the acquisition, and the agreement is expected to be signed next month.
One of the most striking aspects of the deal is the sharp decline in the company’s valuation. Founded by Stanford professors and specializing in custom AI chips, SambaNova was valued at $5 billion in 2021. The current $1.6 billion price tag indicates that the company’s paper valuation has dropped by more than threefold.
The merger is not coincidental. Intel’s CEO, Lip-Bu Tan, is also a member of SambaNova’s board of directors, and his venture capital firm was among the startup’s early investors. This close relationship has helped accelerate the acquisition process. Through this move, Intel aims not only to acquire technology but also to gain significant human capital by combining SambaNova’s architecture with Intel’s manufacturing capabilities, strengthening its competitive position against Nvidia.
