Intel Corporation (INTC.US) is nearing a deal to acquire SambaNova Systems, with the transaction amount potentially being less than $5 billion.

According to sources familiar with the matter, Intel Corporation(INTC.US) is close to reaching a deal to acquire the artificial intelligence chip startup company SambaNova Systems. Two sources said that the two parties have signed a term sheet. However, the final deal may still take some time as regulatory approval, liability review, and due diligence have not been completed. Reports of a potential deal between the two parties first emerged in October. If the deal is finalized, the amount will be less than $5 billion - which is also the valuation of SambaNova in its most recent round of financing in 2021. Intel Corporation's CEO, Pat Gelsinger, is the Chairman of SambaNova, which primarily develops inference computing platforms. There are also other connections between Intel Corporation and SambaNova, including investments from Intel Capital. It was revealed that the Japanese tech giant SoftBank Group invested in Intel Corporation in August, as well as in SambaNova.