Intel has made a strategic move by deciding to invest in SambaNova Systems, an artificial intelligence (AI) chipmaker, and forming a long-term partnership with the company. The US chipmaker aims to bolster its presence in a market currently dominated by Nvidia.
In an announcement made on February 24, it was revealed that Intel will be part of a $350 million funding round for SambaNova. As part of the agreement, SambaNova will integrate Intel server processors and graphics technology into its products, marking the beginning of a comprehensive collaboration encompassing product development, sales, and marketing efforts.
The partnership between Intel and SambaNova follows unsuccessful acquisition talks earlier this year. Reports indicate that Intel explored the possibility of acquiring SambaNova for $1.6 billion, but negotiations did not lead to a final agreement.
Lip-Bu Tan, Intel’s chief executive, has been serving as the chairman of SambaNova since 2017 and was an early investor in the company through his venture firm, Walden International.
Nvidia has long been the leading provider of GPUs for AI developers like Anthropic and OpenAI. The soaring demand for AI computing power has propelled Nvidia to become the most valuable publicly traded company globally. In contrast, Intel has experienced a decline in revenues for four consecutive years, despite a recent uptick in its stock price.