Intel partners with AI chip startup backed by its CEO

Intel has agreed to invest in artificial intelligence (AI) chipmaker SambaNova Systems and enter into a multiyear partnership with the company, as the US chipmaker seeks to strengthen its position in a market dominated by Nvidia.

According to an announcement on February 24, Intel is participating in a $350 million funding round for SambaNova. The agreement will also see SambaNova adopt Intel server processors and graphics technology as part of a broader collaboration on product development, sales and marketing.

The partnership comes after reported acquisition discussions between the two companies failed earlier this year. According to a recent report by Bloomberg, Intel had explored purchasing SambaNova for $1.6 billion, but the talks did not result in a deal. 

Intel’s chief executive, Lip-Bu Tan, has served as chairman of SambaNova since 2017 and was an early investor in the start-up through his venture firm, Walden International. 

For years, Nvidia’s GPUs have been the primary hardware used by AI developers such as Anthropic and OpenAI. Nvidia has become the world’s most valuable publicly traded company amid surging demand for AI computing power, while Intel’s revenues have declined for four consecutive years despite a recent share price recovery.