Intel in talks to acquire AI chip startup SambaNova

Core Insights - Intel Corp. is in preliminary discussions to acquire AI chip startup SambaNova Systems Inc., with a potential valuation below $5 billion, which was the amount raised in a 2021 funding round [1][2] - The talks are at an early stage, and there is no guarantee of a deal, with the possibility of other buyers emerging [2] - SambaNova, founded in 2017 by Stanford professors, designs custom AI chips to compete with Nvidia, focusing on inference systems rather than training models [3][5] Company Background - SambaNova was co-founded by a MacArthur Genius Award winner and has received significant funding, including a $676 million round led by SoftBank in 2021 [4] - The company has shifted its strategy to provide AI cloud services on its own hardware, moving away from selling equipment to other providers [6] - In April, SambaNova laid off approximately 15% of its workforce, indicating potential restructuring amid changing market dynamics [6]