Intel Corp. (INTC) is closing in on a deal that could reshape its AI ambitions. The chipmaking giant is in advanced negotiations to acquire SambaNova Systems, an artificial intelligence chip startup, for about $1.6 billion including debt, according to sources familiar with the matter.
The deal could wrap up as soon as next month, though SambaNova isn't putting all its eggs in one basket. The Palo Alto-based company has signed term sheets with other potential investors, giving it some options if Intel's offer doesn't pan out, Bloomberg reported Saturday.
The SambaNova Story
SambaNova launched in 2017, founded by Stanford professors with a mission to build custom AI chips that could go toe-to-toe with Nvidia Corp. (NVDA). And here's where things get interesting: Intel's CEO Lip-Bu Tan currently serves as chairman of SambaNova's board.
The connections run deeper. Tan's venture firm Walden International actually led SambaNova's $56 million Series A funding round back in 2018, long before he took the helm at Intel.
For Intel, this price tag represents a bargain-bin opportunity to acquire a ready-made AI platform. SambaNova commanded a $5 billion valuation during a 2021 funding round led by SoftBank. Now Intel could snag it for less than a third of that price. That's quite the markdown, even in a tough market for AI startups.
Intel has the cash to make it happen. The company held $11.14 billion in cash and cash equivalents as of September 27, 2025.
Intel stock has been on a tear this year, climbing 89% year-to-date. The rally reflects growing confidence in Intel's AI strategy, support from the U.S. government, and potential major customer deals including Apple Inc. (AAPL).
How Intel's Been Performing
Back on October 23, Intel delivered third-quarter results that beat Wall Street's expectations. Revenue came in at $13.65 billion, topping estimates of $13.14 billion. Adjusted earnings reached 23 cents per share, sailing past forecasts.
Total revenue climbed 3% compared to the prior year. Client Computing revenue grew 5%, though Data Center and AI revenue dipped 1%. Intel generated $2.5 billion in operating cash flow during the quarter.
CEO Lip-Bu Tan highlighted that AI demand is creating opportunities across Intel's product lineup, from CPUs and accelerators to Application-Specific Integrated Circuits and foundry services.
For the fourth quarter, Intel projects revenue between $12.8 billion and $13.8 billion, with adjusted earnings of eight cents per share.
INTC Price Action: Intel shares traded up 1.03% at $38.20 during premarket trading on Monday, according to market data.
