SambaNova Eyes $500M Funding After Intel Deal Falls Through

SambaNova Systems, a leading AI hardware startup, is exploring a fresh funding round of up to $500 million following the collapse of acquisition discussions with Intel Corp. The company, founded in 2017 by Stanford professors, designs advanced AI chips aimed at challenging industry giants like Nvidia.

Intel, which previously considered acquiring SambaNova in a deal valued at $1.6 billion including debt, remains a potential investor, with its chairman Lip-Bu Tan also serving as SambaNova’s chairman. The stalled talks have prompted SambaNova to reach out to other technology firms and semiconductor players for capital infusion.

Key Highlights

• Funding Goal: $300M–$500M from tech and semiconductor investors.
• Intel Talks: Acquisition discussions valued at ~$1.6B including debt stalled.
• Leadership Link: Intel’s CEO Lip-Bu Tan is also SambaNova’s chairman.
• Past Valuation: $5B in 2021 funding round led by SoftBank Vision Fund 2.
• Strategic Focus: Competing with Nvidia in AI chip design and deployment.
• Market Context: Reflects growing investor appetite for AI infrastructure despite consolidation challenges.

This move underscores SambaNova’s determination to remain a formidable player in the AI hardware race, leveraging fresh capital to expand its technology and market presence.

Sources: Bloomberg, Reuters, Investing.com, Tech in Asia.