- Intel moves toward SambaNova as competitors gain ground in AI hardware
- DeepSeek’s Rapid Progress Intensifies Urgency Around Intel Acquisition Strategy
- SambaNova shows the robustness of its hardware through DeepSeek model implementation claims
The growing influence of AMD and Nvidia in AI hardware has put pressure on Intel, leading it to seek the acquisition of SambaNova Systems.
The company has signed a term sheet outlining a potential deal, according to sources who spoke to cabling.
The agreement remains non-binding and can still be withdrawn without penalty. Intel and SambaNova have not issued any official public statement regarding the deal.
Intel’s interest in SambaNova is linked to the success of DeepSeek
Deliberations are still in the early stages and the timeline for regulatory checks, financial reviews and detailed negotiations may stretch for months.
The backdrop of Intel’s interest includes rapid advances from companies like DeepSeek, which drew a lot of attention in 2025 for the performance of its R1 model.
The model has demonstrated reasoning capabilities competitive with leading systems while maintaining lower operating costs.
SambaNova recently announced what it describes as the fastest implementation of the DeepSeek-R1 671B model using its custom hardware.
The company claims it achieved 198 tokens per second for each user with just sixteen of its processors, replacing setups that would normally require extensive GPU racks.
SambaNova was founded in 2017 by a group of Stanford-affiliated researchers and a seasoned Oracle executive.
The company raised $1.14 billion in funding in early 2025 and reached a $5 billion valuation during a round led by SoftBank in 2021.
Its shift toward inference-focused systems marked a strategic response to Nvidia’s dominance in model training hardware.
The startup now offers on-premises and cloud-based solutions and reduced its workforce earlier this year.
Reports indicate that SambaNova could be sold at a price lower than its previous valuation, although the exact terms remain undisclosed.
Intel’s potential acquisition may be influenced by its existing connections, as its CEO Lip-Bu Tan previously held senior positions within SambaNova.
The company recently received substantial support from the US government, and discussions have emerged about the possibility of the government taking a stake in Intel itself.
These developments create an environment in which strategic purchasing gains additional relevance.
There are also reports that the startup is in talks with other potential buyers, implying that Intel is not alone in the race and there could be another bidder.
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