Wedoany.com Report-Dec.13, Intel Corporation is engaged in late-stage negotiations to purchase artificial intelligence chip developer SambaNova Systems Inc. for approximately $1.6 billion, including assumed debt, according to individuals familiar with the discussions.

SambaNova, headquartered in Palo Alto, California, could reach an agreement with Intel as early as next month, the sources indicated, requesting anonymity due to the confidential nature of the matter.

Although talks have progressed significantly, details and schedule remain subject to adjustment. SambaNova has also entered preliminary agreements with alternative investment partners and may choose a different direction, the sources noted.

Spokespersons for both Intel and SambaNova declined to provide comments.

Established in 2017 by professors from Stanford University—one recipient of a MacArthur Fellowship—SambaNova specializes in designing specialized AI processors intended to compete with offerings from Nvidia Corporation.

Intel Chief Executive Officer Lip-Bu Tan serves as chairman of SambaNova. His investment firm, Walden International, participated as a lead investor in the company's initial $56 million funding round in 2018.

At the proposed valuation of $1.6 billion, the transaction would provide Intel with a sought-after technology foundation to expand its artificial intelligence portfolio, representing a lower cost compared to earlier assessments. SambaNova achieved a $5 billion valuation in 2021 following a $676 million investment round headed by SoftBank Group Corporation's Vision Fund 2.

Intel shares have shown strong performance since an August announcement regarding government involvement in the company, rising approximately 60% from levels prior to that disclosure. On Friday, the stock declined 4.3% to close at $37.81 in New York trading, resulting in a market capitalization of $180 billion for Intel.

This potential acquisition aligns with efforts to strengthen capabilities in advanced computing technologies amid growing demand for AI-specific hardware solutions.