Intel Nears Major AI Acquisition with $1.6 Billion Startup Deal

Intel is in advanced discussions to acquire artificial intelligence chip startup SambaNova Systems, according to multiple consistent reports. Valued at $1.6 billion, including debt, this potential transaction could be finalized as soon as January 2026. The move represents a significant strategic effort by the semiconductor giant to bolster its competitive position in the accelerating AI race, though it introduces notable corporate governance considerations.

Intel's shares recently closed at $36.05, marking a decline of 3.38% and extending a losing streak to five consecutive trading sessions. The stock has retreated approximately 18% from its 52-week high of $44.02 reached in early December. Despite this recent pressure, Intel's equity has still recorded a substantial gain of about 86% since the start of the year.

The acquisition would be Intel's largest AI-focused deal since its $2 billion purchase of Habana Labs in 2019. It follows a series of major strategic investments secured by the company in 2025, including $8.9 billion from the U.S. government for a 9.9% stake, $5 billion from NVIDIA for CPU roadmap development, and $2 billion from SoftBank targeting its foundry business.

SambaNova's Specialized Technology

Based in Palo Alto, SambaNova Systems designs specialized AI processors known as Reconfigurable Dataflow Units (RDUs). These chips are engineered as an alternative to traditional GPU architectures, focusing primarily on efficient AI inference workloads. The company's client base largely consists of enterprise and government customers seeking scalable on-premise solutions.

Should investors sell immediately? Or is it worth buying Intel?

The reported $1.6 billion purchase price stands considerably below the startup's peak valuation of over $5 billion, which it achieved during funding rounds in 2021.

Governance Questions Surface

The proposed deal involves an unusual leadership dynamic. Intel's CEO, Lip-Bu Tan, currently serves as the Executive Chairman of SambaNova and was a founding investor in the startup through his venture capital firm, Walden International. Reports indicate that Tan has recused himself from the final vote on the acquisition. The decision now rests with Intel’s Audit Committee and Chief Financial Officer David Zinsner.

Market observers will be watching closely to see if this acquisition delivers the intended acceleration for Intel's AI segment in the coming quarters. The company faces established and formidable competitors in the space, notably NVIDIA and AMD.

A final agreement for the SambaNova transaction could be reached in January 2026.