Intel (NASDAQ:INTC) shares gained about 1.25% on Monday, supported by broader strength across technology stocks and reports that the chipmaker is in late-stage discussions to acquire artificial intelligence startup SambaNova Systems for roughly $1.6 billion.
Bloomberg reported on Friday that Intel is engaged in advanced negotiations to buy the Palo Alto, California-based company, with a transaction potentially coming together as early as next month. The deal would reportedly include SambaNova’s outstanding debt, according to sources familiar with the matter who requested anonymity.
While talks are said to be well progressed, people close to the discussions cautioned that pricing, structure and timing remain subject to change. SambaNova has also entered into term sheet discussions with other potential financial backers and could still explore alternative paths.
The reported move reflects Intel’s efforts to bolster its presence in the fast-expanding market for AI-focused chips, an area where rivals such as Nvidia (NASDAQ:NVDA) currently hold a strong lead. SambaNova specializes in AI accelerator technology built to support demanding machine learning and data-intensive workloads.
Spokespeople for both Intel and SambaNova declined to comment on the reported negotiations when approached by Bloomberg.