Intel (NASDAQ:INTC) stock rose 1.25% Monday amid broader strength in the technology sector and following reports that the chipmaker is nearing a $1.6 billion acquisition of AI chip startup SambaNova Systems.
According to a Bloomberg report published Friday, Intel is in advanced talks to purchase the Palo Alto, California-based company in a deal that could materialize as soon as next month. The potential acquisition includes SambaNova’s debt, according to people familiar with the matter who asked not to be identified.
While discussions are reportedly at an advanced stage, the terms and timing could still change. SambaNova, which has signed term sheets with other potential financial investors, might also pursue alternative options, the sources indicated.
The potential acquisition comes as Intel seeks to strengthen its position in the rapidly growing artificial intelligence chip market, where competitors like Nvidia have established dominant positions. SambaNova develops AI accelerators designed to handle complex machine learning workloads.
Representatives for both Intel and SambaNova declined to comment on the potential deal when contacted by Bloomberg.
