Intel Bets on SambaNova in Strategic AI Chip Alliance

In a significant move to challenge Nvidia's dominance, Intel has entered a multi-year partnership with AI chip specialist SambaNova Systems. The collaboration, announced this week, will see SambaNova adopt Intel's server chips and graphics processors. Intel is also contributing to a new $350 million funding round for the startup, deepening an investment relationship that began in 2019.

For years, Nvidia's hardware has powered the generative AI revolution, leaving established players like Intel seeking a foothold. Despite recent stock gains fueled by federal investment, Intel's core revenue has faced persistent decline. This partnership is a clear tactical shift. Earlier this year, Bloomberg reported that Intel explored acquiring SambaNova for $1.6 billion, but those discussions ultimately stalled.

SambaNova, whose clients include Meta and the AI platform Hugging Face, is now promoting its new SN50 processor. CEO Rodrigo Liang claims the chip outperforms Nvidia's latest Blackwell-based GPUs in certain configurations, offering more computing power for an equivalent cost. The company also announced that SoftBank, a major OpenAI investor, will deploy the SN50.

Liang acknowledges Nvidia's market saturation but argues for a diversified future. "New technologies are emerging that can run models with high efficiency," he told CNBC. "In a mixed-hardware environment, which many are now building, you can extract far greater value from your infrastructure."

Intel's CEO, Pat Gelsinger, who also chairs SambaNova, recused himself from the partnership negotiations due to his dual role. The two companies will now coordinate on sales and marketing, with SambaNova aiming to sell integrated systems for corporate data centers while expanding its own AI cloud services.

Source: CNBC