- Intel turns to SambaNova as competitors gain ground in AI hardware
- DeepSeek’s Rapid Progress Heightens Urgency Around Intel’s Acquisition Strategy
- SambaNova Showcases the Power of Its Hardware with DeepSeek Model Deployment Claims
The growing influence of AMD and Nvidia in the field of artificial intelligence hardware has put pressure on Intel, prompting it to pursue the acquisition of SambaNova Systems.
The company has signed a term sheet outlining a potential deal, according to sources interviewed. Wired.
The agreement remains non-binding and can always be withdrawn without penalty. Intel and SambaNova have not released any official public statements regarding the deal.
Intel’s interest in SambaNova is linked to the success of DeepSeek
Deliberations are in their early stages and the timetable for regulatory reviews, financial reviews and detailed negotiations may stretch for months.
Intel’s interest is driven by the rapid progress of companies such as DeepSeek, which gained attention in 2025 for the performance of its R1 model.
The model demonstrated competitive reasoning capabilities compared to leading systems while maintaining lower operating costs.
SambaNova recently announced what it describes as the fastest deployment of the DeepSeek-R1 671B model using its custom hardware.
The company claims to have achieved 198 tokens per second for each user with just sixteen of its processors, replacing configurations that would normally require vast GPU racks.
SambaNova was founded in 2017 by a group of Stanford-affiliated researchers and a senior Oracle executive.
The company secured $1.14 billion in funding in early 2025 and reached a valuation of $5 billion in a SoftBank-led funding round in 2021.
Its move toward inference-focused systems marked a strategic response to Nvidia’s dominance in model training hardware.
The startup now offers cloud-based and on-premises solutions and reduced its workforce earlier this year.
Reports indicate that SambaNova could be sold at a lower price than its previous valuation, although the exact terms are not disclosed.
Intel’s potential acquisition could be influenced by its existing relationships, as its CEO, Lip-Bu Tan, previously held senior positions at SambaNova.
The company has recently received substantial support from the US government and discussions have surfaced about the government taking a stake in Intel itself.
These developments create an environment in which strategic purchasing becomes more relevant.
The startup is reportedly in discussions with other potential buyers, implying that Intel is not alone in the race and that there could be another bidder.
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