Intel Takes Major Step in Plan to Acquire Chip Startup SambaNova

The details of the term sheet are unknown. The agreement is non-binding, meaning the deal is not yet finalized and could be dissolved without penalty. It could take weeks or even months before regulatory approval, liability scrutiny, and financial due diligence are complete.

Intel’s interest in acquiring the startup was first reported by Bloomberg in late October. At the time, the talks were in the early stages. The report noted that SambaNova could sell for less than the $5 billion valuation it had reached in April 2021.

Notably, Intel CEO Lip-Bu Tan is currently the chairman of SambaNova Systems. Intel Capital, which Intel is in the process of spinning off into a standalone fund, has also invested in SambaNova Systems. Another investor in SambaNova, Japan’s SoftBank Group, made a major investment in Intel earlier this year.

A spokesperson for SambaNova declined to comment. Intel had not yet responded ...