Intel is reportedly pursuing acquisition of AI chip startup SambaNova to bolster its competitive position in AI processors.

Intel is exploring beefing up its AI capabilities by acquiring SambaNova Systems, a developer of custom-designed chips and hardware, software, and pre-trained models for AI, Bloomberg reported Thursday. Should the acquisition take place, Intel would gain a developer of chips, systems, and clouds aimed squarely at AI inference and give more direction to Intel's AI strategy which has seen several ups and downs. Neither Intel nor SambaNova responded to requests for more information by press time.

SambaNova would likely be valued well below its peak valuation of over $5 billion. News of the possible acquisition comes just a few days after The Information reported that SambaNova is exploring a sale after struggling to complete a fundraising round. SambaNova has raised a total of $1.14 billion in funding and had a valuation of $5.1 billion as of 2021, according to PitchBook.

Intel CEO Lip-Bu Tan is well connected with SambaNova, having served as executive chairman of SambaNova since May 2024. In addition, Tan is the chairman of Walden International, one of SambaNova's investors. Intel Capital is also an investor in SambaNova, alongside SoftBank's Vision Fund, which is also an investor in Intel. Nvidia is also a SambaNova investor.

Intel has struggled with the AI market. The company in January canceled plans to sell its next-generation Falcon Shores AI accelerator chip, which it had hoped to release sometime this year. The company at the time said it wanted to focus on developing a "system-level solution at rack scale" with a successor chip it's calling Jaguar Shores. This month, Intel unveiled a 160-GB energy-efficient GPU code-named "Crescent Island" for use in inference workloads running on air-cooled enterprise servers, slated to start shipping in the second half of 2026. However, the company did not provide an update for its Jaguar Shores next-generation GPU.