This article first appeared on GuruFocus.
Intel Corp. (INTC, Financials) shares went up as tech markets in general rose and news broke that the chipmaker is in advanced discussions to buy the AI firm SambaNova Systems.People who know about the deal say it would be worth roughly $1.6 billion and would include SambaNova’s debt. The business, which is located in Palo Alto, makes AI accelerators that are meant to tackle complicated machine-learning tasks. There might be a settlement by next month, but talks could shift at any time.SambaNova has also spoken to other possible investors, which means that Intel could have to compete with them or the deal would not go through. Both firms’ spokespeople refused to comment on the talks that were said to have taken place.Intel is trying to bolster its position in the fast-growing AI chip sector, where competitors have moved faster to get a bigger piece of the market. Investors have been putting pressure on Intel to show faster progress in artificial intelligence as it reorganizes several areas of its company.Market sentiment toward tech companies also helped Intel shares rise, even though the sector is still quite volatile.