Intel Nears SambaNova Acquisition at $1.6B Fire-Sale Price, Down from $5B Valuation

Intel Nears SambaNova Acquisition at a $1.6B fire-sale price, down from a $5B valuation, with reports suggesting the deal could close near the latter figure if completed. In November, it was reported that Intel was considering a $5 billion acquisition to accelerate its AI transformation through SambaNova’s RDU-based architecture; fresh reports indicate the actual value may be sharply reduced.

According to Bloomberg, the latest information contrasts with earlier speculation, and the deal, if confirmed, would amount to a fire-sale price for SambaNova. SambaNova, founded in 2017, was valued at over $5 billion during its 2021 funding round, and its investor roster has included SoftBank, Google Ventures, and Intel Capital, with Tan’s Walden International also backing the company and Tan joining SambaNova’s board in May last year.

The company emphasises its DataScale systems and SN40L processors for high-performance generative AI inference and fine-tuning, and Intel may use the acquisition to bolster its inference capabilities and end-to-end system solutions, though integration with the Gaudi product line and oneAPI would be a challenge. The deal could be finalised within weeks, though due diligence could delay finalisation, and both Intel and SambaNova have declined to comment.