Intel's Shocking $1.6B Deal: What This Startup's Inference Chip Could Mean for Your Tech Future!

Intel Corp. is reportedly in advanced talks to acquire SambaNova Systems Inc., a venture-backed developer specializing in artificial intelligence chips. According to a report from Bloomberg, the acquisition could potentially value SambaNova at $1.6 billion, debt included. This move would mark the first significant startup acquisition for Intel under Chief Executive Officer Lip-Bu Tan, who took the helm in March.

Palo Alto, California-based SambaNova has developed an AI chip known as the SN40L, which is specifically optimized for inference tasks. Inference refers to the process of running AI models in production after they have been trained. One of the chip's most compelling features is its power efficiency; SambaNova asserts that the SN40L can generate more tokens per kilowatt-hour compared to rival processors.

The operation of an AI model involves multiple steps. Each time the model completes a step, it saves the results to memory. These results must then be transferred to the chip's cores for the next step in the process. This data movement constitutes a significant portion of the power consumption associated with AI chips. SambaNova claims that the SN40L significantly minimizes this data movement by compressing multiple inference-related calculations into a single operation. This method reduces the number of memory round-trips necessary for data processing. The chip utilizes three types of memory: high-speed SRAM, HBM, and DRAM, which enables it to keep data readily available and efficiently manage multiple AI models.

Moreover, the SN40L is delivered as part of a system called the SambaRack, which includes 16 chips and operates using a custom software toolkit named SambaStack. This toolkit supports popular open-source large language models and provides cloud access to the chips, eliminating the need for customers to manage any hardware themselves.

In 2018, SambaNova successfully raised a funding round of $56 million, led by Walden International, the venture capital firm founded by Lip-Bu Tan, who also serves as the executive chair of SambaNova. Later, the company secured a whopping $676 million in funding from SoftBank Group Corp., elevating its valuation to $5 billion.

Intel aims to finalize the acquisition as early as next month, although sources caution that the timeline could change. Additionally, there remains the possibility that SambaNova may choose not to sell to Intel, as it is reportedly considering offers from multiple potential investors.

This news comes just two months after Intel previewed its upcoming series of graphics processing units (GPUs), dubbed Crescent Lake. Like the SN40L, these GPUs are designed specifically for data center inference and emphasize power efficiency.

As the competition in AI and chip technology intensifies, this potential acquisition signals Intel's commitment to strengthening its capabilities in the AI sector. With the market increasingly leaning towards more efficient and powerful AI solutions, a successful acquisition of SambaNova could position Intel as a formidable player in this growing field.

About SiliconANGLE Media

SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights, and real-time audience engagement. The company operates various digital media brands that reach over 15 million elite tech professionals.