Vista Equity Partners and Intel to co-Lead New Investment Round in AI Chip Startup SambaNova

Vista Equity Partners is leading a new Series E funding round of more than $350 million in AI chip startup SambaNova Systems, a notable shift from Vista’s usual focus on enterprise software.The investment is being made through a partnership with early-stage firm Cambium Capital, according to sources. The round is oversubscribed and includes existing investor Intel, which plans to invest about $100 million, with possible commitments rising to $150 million. The valuation has not been disclosed, and fundraising is still ongoing.

SambaNova is raising capital to compete with Nvidia and to meet growing demand for AI inference chips, which are increasingly critical for running AI applications efficiently. The deal comes amid broader market dynamics: software stocks have recently faced significant selloffs as investors reassess the impact of AI-driven disruption, while interest in AI hardware has surged.

The funding follows heightened activity around Nvidia challengers, including large raises by Cerebras Systems and a major deal involving Groq. OpenAI has also explored alternative chip suppliers to reduce reliance on Nvidia GPUs. SambaNova’s raise comes after acquisition talks with Intel, reportedly valued at $1.6 billion, fell through.

Founded in 2017, SambaNova was valued at $5 billion in 2021 but has since faced layoffs and strategic shifts. It has raised over $1 billion to date and recently reported meeting its annual sales targets.