Intel Eyes $1.6 Billion AI Chip Buy As It Takes On Nvidia's Turf

Intel Corp. (NASDAQ:INTC) is in advanced talks to buy artificial intelligence chip startup SambaNova Systems for about $1.6 billion, including debt, sources said. The Palo Alto-based deal could close as soon as next month. Additionally, SambaNova could pursue another option, as it has signed term sheets with other potential investors, Bloomberg reported Saturday. About SambaNova Founded in 2017 by Stanford professors, SambaNova builds custom AI chips to compete with Nvidia Corp. (NASDAQ:NVDA). Also Read: Intel Ditches Sale Talks And Reinvents Networking Business Inside Its AI Strategy Notably, Intel CEO Lip-Bu Tan serves as SambaNova’s chairman. Moreover, his venture firm Walden International led SambaNova’s $56 million Series A round in 2018. At this price, Intel would gain a long-sought AI platform at a steep discount. In contrast, SambaNova reached a $5 billion valuation during a 2021 funding round led by SoftBank. Intel held $11.14 billion in cash and cash equivalents as of September 27, 2025. Intel stock gained 89% year-to-date, driven by AI focus, U.S. government support, and potential customer deals like Apple Inc. (NASDAQ:AAPL). Recent Earnings On October 23, Intel reported stronger-than-expected third-quarter results. The chipmaker posted revenue of $13.65 billion, topping estimates of $13.14 billion. Meanwhile, adjusted earnings came in at 23 cents per share, well above forecasts. Overall, total revenue rose 3% year over year. Client Computing revenue increased 5%, while Data Center and AI revenue slipped 1%. Intel generated $2.5 billion in operating cash flow. CEO Lip-Bu Tan said AI demand is boosting opportunities across Intel’s CPUs, accelerators, Application-Specific Integrated Circuits, and foundry services. Looking ahead, Intel expects fourth-quarter revenue between $12.8 billion and $13.8 billion, with adjusted earnings of eight cents per share. INTC Price Action: Intel shares were up 1.03% at $38.20 during premarket trading on Monday, according to Benzinga Pro data. Read Next: Intel’s Chip Ambitions Stir Alarm Over China-Linked Tech Photo by Tada Images via Shutterstock