Intel set to buy AI chip specialist as it scrambles to catch up with AMD, Nvidia

Date:
Fri, 12 Dec 2025 19:30:00 +0000

Description:
Intel plans to buy SambaNova but faces mounting pressure as valuation
concerns shadow the sale.

FULL STORY ======================================================================Intel moves toward SambaNova as competitors gain ground in AI hardware DeepSeeks rapid progress intensifies urgency around Intels acquisition strategy SambaNova showcases its hardware strength through DeepSeek model deployment claims

AMD and Nvidias growing influence in artificial intelligence hardware has put pressure on Intel, prompting it to pursue the acquisition of SambaNova Systems.

The company has signed a term sheet that outlines a potential deal, according to sources who spoke to Wired .

The agreement remains non-binding, and it can still be withdrawn without penalty. Intel and SambaNova have not issued any official public statement regarding the deal. Intel's interest in SambaNova is linked to DeepSeek's success

Deliberations remain in early stages, and the timeline for regulatory checks, financial reviews, and detailed negotiations may extend for months.

The backdrop to Intels interest includes rapid advances by companies such as DeepSeek, which drew wide attention in 2025 for the performance of its R1 model.

The model has demonstrated reasoning capabilities competitive with leading systems while maintaining lower operating costs.

SambaNova recently announced what it describes as the fastest deployment of the DeepSeek-R1 671B model using its custom hardware.

The company claims it achieved 198 tokens per second for each user with only sixteen of its processors, replacing configurations that would normally require extensive GPU racks.

SambaNova was founded in 2017 by a group of Stanford-affiliated researchers and an experienced Oracle executive.

The company secured $1.14 billion in funding by early 2025 and reached a valuation of $5 billion during a SoftBank-led round in 2021.

Its shift toward inference-focused systems marked a strategic response to Nvidias dominance in model training hardware.

The startup now offers both cloud-based and on-premises solutions and reduced its workforce earlier this year.

Reports indicate that SambaNova could be sold at a price below its previous valuation, although the exact terms remain undisclosed.

Intels potential acquisition may be influenced by its existing connections, since its CEO, Lip-Bu Tan, previously held senior roles within SambaNova.

The company recently received substantial US government support, and discussions have surfaced about the government potentially taking a stake in Intel itself.

These developments create an environment in which strategic purchases gain additional relevance.

There are also reports that the startup is in discussion with other prospective buyers, which implies that Intel is not alone in the race, and there could be another bidder.

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Link to news story: https://www.techradar.com/pro/intel-set-to-buy-ai-chip-specialist-as-it-scramb les-to-catch-up-with-amd-nvidia


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