Intel in talks to acquire AI chip startup SambaNova, Bloomberg News reports

[blueone]

I saw a quote a while back by one of their co-founders that the WSE-3 core exclusion rate due to flaws was about 2-3% of the total cores on the chip. So it sounds like the chip is fab’d with approximately 925,000 gross cores, very roughly.

Wrong! I found the number for the WSE-3. 970,000 total cores on the die, so they can guarantee 900,000 net working cores.

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[blueone]

Not at all. Intel has an M&A team and lawyers that do the work. The same thing happened at Cadence. A couple of the companies Cadence acquired had Walden Ventures inside. Hopefully the M&A team does their job. I did an acquisition with Cadence and their team was very good. Siemens has the best M&A team I have ever worked with. They do a LOT of deals. I have not done a deal with Intel but I have heard no complaints.

Having been right in the middle of a situation like this, on the M&A team, but on a much larger scale, conflict of interest is assumed. When a senior exec has a financial interest in an acquisition target, and the acquirer is a public company, all I can say politely is: what a mess. And remember, SambaNova may be a little thing by comparison to my experience, but LBT has the USG as an investor.

 

[hist78]

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U.S. chip-maker Intel Corporation is reportedly in early-stage talks to acquire AI-chip startup SambaNova Systems, according to sources cited by Bloomberg News. The potential acquisition would mark a strategic push for Intel into the growing artificial-intelligence hardware space, after previous efforts to roll out its own AI-GPU products lagged behind competitors.

SambaNova, which designs custom AI processors and systems, has been working with bankers to gauge interest from potential buyers. While the company achieved a valuation of around USD 5 billion in a 2021 funding round, any deal today would likely value it below that level. The discussions remain preliminary and there is no guarantee they will lead to a transaction.

Intel has longstanding ties to SambaNova: Intel’s venture arm, Intel Capital, is an investor in the startup, and former Intel executive and investor Lip‑Bu Tan serves as SambaNova’s executive chairman. Industry watchers view such a move as a way for Intel to accelerate its AI hardware roadmap and better compete in the data-centre and cloud-inference markets. The companies declined to comment on the report.

https://www.yahoo.com/finance/news/intel-talks-acquire-ai-chip-202208497.html

I’m wondering whether the new SambaNova under Intel Corporation will continue using TSMC or migrate to Intel Foundry Services.

 

[Daniel Nenni]

Having been right in the middle of a situation like this, on the M&A team, but on a much larger scale, conflict of interest is assumed. When a senior exec has a financial interest in an acquisition target, and the acquirer is a public company, all I can say politely is: what a mess. And remember, SambaNova may be a little thing by comparison to my experience, but LBT has the USG as an investor.

True. I have only been involved with < $100M deals. Lip-BU is smart and very M&A experienced, I'm sure he has this all ironed out. Seriously, never bet against the man.

 

[Daniel Nenni]

I’m wondering whether the new SambaNova under Intel Corporation will continue using TSMC or migrate to Intel Foundry Services.

My bet would be IFS. Intel has to fill those fabs. It will be interesting to see how many of Walden Ventures chip company investments move to IFS.

 

[blueone]

True. I have only been involved with < $100M deals. Lip-BU is smart and very M&A experienced, I'm sure he has this all ironed out. Seriously, never bet against the man.

I've never met LBT, so I hope everything you've said is true. I want Intel to succeed.

Unfortunately for me, I did bet against him in a way. I didn't buy INTC when it was about $20/share. I learned an expensive lesson from not following your confidence in him.

 

[hist78]

My bet would be IFS. Intel has to fill those fabs. It will be interesting to see how many of Walden Ventures chip company investments move to IFS.

It’s possible that Lip-Bu Tan could help bring more orders from companies he has invested in over the years, assuming the migration costs and timelines make sense for those customers.

However, a key question remains: Will Intel have enough capacity to serve external customers in 2027–2028?

2026 is likely off the table. There is not enough time for design migration, qualification, and ramp, and, as Intel’s CFO noted in the recent earnings call, Intel’s own product demand is already expected to fully utilize most of its available manufacturing capacity in 2026.

 

[siliconbruh999]

However, a key question remains: Will Intel have enough capacity to serve external customers in 2027–2028?

Yes Fab62 is not going to filled for quite a while