Intel-Backed SambaNova Systems Secures $350M+ in Massive Funding Round as AI Chip Wars Heat Up

The artificial intelligence semiconductor landscape is witnessing seismic shifts as Intel-backed SambaNova Systems closes a staggering $350 million+ Series E funding round, signaling growing investor confidence in alternatives to Nvidia’s AI chip dominance.

According to exclusive Reuters reporting on February 6th, the funding round is being led by private equity powerhouse Vista Equity Partners through a strategic partnership with Cambium Capital. The oversubscribed round has attracted significant attention from major players, with Intel itself planning to invest between $100 million and $150 million, underscoring the tech giant’s commitment to diversifying its AI chip portfolio.

This development comes after months of speculation about Intel’s interest in SambaNova. Bloomberg reported in October 2025 that Intel was in advanced talks to acquire the AI chip start-up for approximately $1.6 billion. Wired later revealed in December that Intel had signed a term sheet for the acquisition, but those negotiations have since stalled, leading to this strategic investment instead.

The partnership dynamics are particularly noteworthy. Intel CEO Lip-Bu Tan serves as chairman of SambaNova’s board, creating a unique alignment of interests. Additionally, Intel Capital—which separated from its parent company last year—has maintained its investment in the start-up. The funding round also features participation from Japan’s SoftBank Group, which recently made headlines with its $2 billion investment in Intel as the U.S. administration considers taking a 10% stake in semiconductor manufacturing.

Founded in 2017 by Stanford professors Kunle Olukotun, Rodrigo Liang, and Christopher Ré, SambaNova Systems has positioned itself as a formidable challenger in the AI chip arena. The company specializes in AI chip platforms for inference computing, a critical component of the AI ecosystem that determines how quickly and efficiently trained models can process real-world data.

Rodrigo Liang, who previously served as an executive at Oracle, has been vocal about the shifting dynamics in the AI chip market. In 2024, he told industry publications that Nvidia had “lost some of its sheen” and that “rivals are biting at its heels.” His assessment came during a period when Nvidia’s stock experienced volatility despite strong revenue growth, suggesting that the market was beginning to price in competition.

While Nvidia has since rebounded dramatically—exceeding revenue expectations, achieving historic $5 trillion market valuation, and maintaining its position as the dominant force in AI chips—the emergence of well-funded competitors indicates that the market may be approaching a tipping point.

The timing of SambaNova’s funding round coincides with a flurry of activity across the AI chip sector. Cerebras Systems, another Nvidia rival, raised $1 billion in a Series H round last week, achieving a $23 billion valuation. The round was led by Tiger Global with participation from AMD. Cerebras recently announced a high-profile partnership with OpenAI to deploy 750 megawatts of its wafer-scale systems, aiming to dramatically accelerate the performance of OpenAI’s chatbots.

Meanwhile, Positron, yet another Nvidia competitor focusing on energy-efficient AI chips for inference, secured $230 million from Arm Holdings and the Qatar Investment Authority, pushing its valuation above $1 billion. This influx of capital into multiple AI chip start-ups suggests that investors see substantial opportunity in breaking Nvidia’s near-monopoly.

The competitive landscape shifted dramatically in December when Nvidia itself acquired Groq, one of its rising competitors, in a $20 billion deal. Rather than eliminating the competition, Nvidia’s strategy involves integrating Groq’s technology while allowing it to continue operating as an independent entity. Groq has been expanding aggressively, opening its first European data center in Finland earlier this year.

Industry analysts suggest that this wave of investment and consolidation reflects several converging trends: the insatiable demand for AI computing power, the strategic importance of semiconductor independence, and the recognition that Nvidia’s current architecture may not be optimal for all AI workloads.

The implications extend beyond pure technology competition. As nations and corporations seek to reduce dependence on single suppliers for critical AI infrastructure, companies like SambaNova represent strategic assets that can help diversify supply chains and reduce geopolitical vulnerabilities.

With this latest funding, SambaNova is well-positioned to accelerate its R&D efforts, expand its market presence, and potentially pursue additional strategic partnerships or acquisitions. The company’s focus on inference computing—a rapidly growing segment as AI models move from training to deployment—aligns perfectly with market demand.

As the AI chip wars intensify, one thing is clear: the era of unquestioned Nvidia dominance may be giving way to a more diverse and competitive landscape, with SambaNova emerging as a central player in this transformation.

Tags: #AI #Semiconductors #SambaNova #Intel #Nvidia #AIchips #VentureCapital #TechFunding #ArtificialIntelligence #ChipWars #VistaEquityPartners #CambiumCapital #SoftBank #Cerebras #Groq #Positron #TechNews #SiliconValley #AIInfrastructure

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