SAN FRANCISCO, Jan 21, 2026, 15:57 PST
- SambaNova is reportedly seeking $300 million to $500 million from investors following the collapse of Intel takeover discussions, according to Bloomberg
- The report noted that Intel CEO Lip-Bu Tan also serves as chairman of SambaNova
- According to the report, a previous proposal pegged SambaNova’s value at roughly $1.6 billion, debt included
SambaNova Systems is considering a funding round that could reach $500 million after its talks to sell the AI chip startup to Intel hit a dead end, Bloomberg News reported Wednesday, citing sources familiar with the situation. Bloomberg
The move comes at a sensitive time in the AI hardware sector. Major chipmakers are expanding their AI product ranges, while venture-backed startups scramble to manage cash flow and keep pace in a field largely controlled by a few key players.
For Intel, this marks another step in its ongoing effort to regain trust in AI chips and data centers. For SambaNova, it shows that selling out isn’t the only option — they still need funding to keep operating.
Based in Palo Alto, California, the company is currently pitching tech firms and semiconductor manufacturers for a funding round between $300 million and $500 million, sources tell Bloomberg. Investing
Intel CEO Lip-Bu Tan, who also leads SambaNova, is considering whether Intel should put more money into the startup, the report said.
Intel had been in talks to buy SambaNova in a deal valuing the company at roughly $1.6 billion including its debt, Bloomberg reported, citing discussions that surfaced back in December. This meant the buyer would also assume SambaNova’s existing borrowings. Seekingalpha
Intel’s stock jumped nearly 12% on Wednesday as investors zeroed in on CEO Tan’s turnaround strategy ahead of the company’s quarterly earnings, set to be released after markets close on Thursday. “This is the most optimistic sentiment around the company in quite some time; the near-term outlook looks very strong,” said Ryuta Makino, an analyst at Gabelli Funds. Reuters
The competitive landscape remains ruthless. Nvidia continues to dominate data-center graphics processors crucial for AI tasks, while AMD keeps challenging Intel in vital segments of the server and PC markets.
SambaNova’s move to secure strategic funding from tech firms and chipmakers, instead of going the traditional IPO route, highlights just how costly it is to compete in custom AI chips and their supporting systems.
The size of the raise isn’t guaranteed. A stalled takeover can unsettle investors, and large contributions from strategics often come with strings—product commitments or increased oversight. If backers are scarce, SambaNova might have to settle for a smaller round or tougher conditions.
Bloomberg didn’t explain why Intel’s talks faltered, and the sources it quoted noted that details about the fundraising remain confidential.
