San Francisco: Intel is preparing to invest an additional 15 million dollars in AI chip startup SambaNova Systems, as it strengthens its push into the fast growing artificial intelligence sector.
The planned investment comes just weeks after Intel had already put in 35 million dollars earlier this year. If the new funding is approved, Intel’s total stake in SambaNova will rise to around 9 percent.
The move shows Intel’s renewed focus on competing in the AI chip market, where companies like Nvidia currently lead. SambaNova is known for developing chips used in AI inference, which helps run applications such as chatbots and data analysis tools.
Earlier this year, SambaNova raised more than 350 million dollars from investors, with Intel playing a key role in the funding round. The company has recently shifted its focus to AI inference, a segment that is seeing strong demand.
Intel had previously explored acquiring SambaNova for about 1.6 billion dollars, but the deal did not move forward. Instead, the company is now choosing to build a partnership through investments, allowing it to benefit from new technology while reducing risks.
However, the investment has also raised questions about corporate governance. Intel’s chief executive Lip-Bu Tan is also the chairman of SambaNova. This dual role has led to concerns about potential conflicts of interest. Intel has said that strict internal rules and board oversight are in place to manage such risks.
SambaNova has faced challenges in recent years, including layoffs and strong competition in the AI chip industry. But the company says it achieved record performance in 2025 and is now focusing on areas with higher growth potential.
The latest investment reflects a broader trend in the technology industry, where major companies are increasingly partnering with startups to stay competitive in the rapidly evolving AI space.