Intel (INTC) potentially investing at least $100M into SambaNova Systems should help the semiconductor giant’s artificial intelligence ambitions, Wedbush Securities said.
“In our view, for a significant period of time SambaNova appeared to trail a number of its early AI silicon peers (Groq, etc.), but with AI demand continuing to lift,” analyst Matt Bryson wrote in a note to clients. “The value of AI design talent [is] increasing; and not all custom ASIC efforts progressing as planned (highlighting the inherent difficulties in designing and building an AI processor), it makes sense to us that SambaNova’s perceived value is lifting.”
In December, Nvidia (NVDA) entered into a non-exclusive licensing agreement with Groq, worth some $20B, for its inference technology.
Last year, Intel had been close to acquiring SambaNova, and in December, a term sheet was signed between the two parties. However, talks between the two parties stalled, and SambaNova Systems is now evaluating raising up to $500M in financing.
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.