Intel is apparently planning to take over the AI chip startup SambaNova Systems for billions as part of its AI strategy.
• Intel and SambaNova apparently in advanced takeover talks
• Addition to Intel’s AI portfolio
• Possible conflict of interest: Intel CEO also active at SambaNova
The US semiconductor giant Intel is apparently planning to buy SambaNova Systems. As “Bloomberg” reports, among others, Intel is offering around 1.6 billion US dollars for the AI chip startup, including debt. The discussions are already at an advanced stage and the transaction could be completed in the coming weeks or months, even if the conditions have not yet been finally clarified, it said.
According to WIRED, the current takeover talks are based on a non-binding term sheet that describes the key points of the planned transaction, but can only become a binding contract after detailed reviews, regulatory approvals and financial audits. According to “RTTNews”, Intel’s targeted purchase price of $1.6 billion is well below SambaNova’s previous valuation levels: In a financing round in 2021, the startup was valued at around $5 billion.
Strategic significance of the takeover for Intel in the AI competition
The Palo Alto, California-based startup SambaNova was founded in 2017 by professors at Stanford University and specializes in tailor-made AI chips and platforms that are primarily intended for AI inference workloads – i.e. the practical use of pre-trained AI models. The startup’s technology is considered a potential competitor to the market-dominant GPU solutions from NVIDIA, for example, which have so far dominated the AI hardware field.
For Intel, a purchase would be a logical addition to its AI portfolio – especially given the tough competition with NVIDIA. Intel has tried to catch up in the AI chip segment in recent years, but internal developments – such as GPUs and specialized accelerators – have been slower than many rivals. According to “Börse Express”, experts see the takeover as an opportunity to integrate immediate expertise and market-ready technology instead of pushing ahead with the development of comparable competencies alone.
Corporate governance questions overshadow possible deal
However, a takeover of SambaNova by Intel would also raise questions about possible conflicts of interest. Intel CEO Lip-Bu Tan not only serves as CEO of Intel, but is also active as Executive Chairman of SambaNova and was previously involved in the startup through his venture capital company. This raises questions about corporate governance as there could be potential conflicts of interest between personal ties and the decisions of the Intel board.
This is how Intel shares react
Intel shares ended Friday trading on the NASDAQ with a loss of 4.3 percent to $37.81. In Monday trading it temporarily rose by 1.15 percent to $38.25.
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