Intel (INTC) is nearing a deal to acquire artificial intelligence chip startup SambaNova Systems, Wired reported.
A term sheet has been signed between the two parties, the news outlet added, citing two sources close to the situation. However, a finalized deal could take some time, as regulatory approval, liability scrutiny, and due diligence have not yet been completed.
A potential deal between the two was first reported in October. If the deal comes to fruition, it would be in an amount less than $5B, which is what SambaNova was valued at in its last funding round in 2021.
Intel CEO Lip Bu-Tan is the executive chairman of SambaNova, which makes a platform for inference computing. There are other ties between Intel and SambaNova, including an investment from Intel Capital. Japanese tech conglomerate SoftBank (SFTBY), which invested in Intel in August, has also invested in SambaNova, according to the company.
Intel and SambaNova did not immediately respond to a request for comment from Seeking Alpha.
