Intel to Acquire SambaNova, Intensifying Global NPU Technology Race

Aiming to Catch Up with Nvidia in the GPU Race
Korea Fosters NPU Development to Nurture 'Post-HBM' Semiconductor Startups

Intel has entered the global competition for neural processing units (NPUs). As demand for inference and on-device artificial intelligence (AI) grows, NPUs are emerging as a core pillar of next-generation computing technology, and global companies are accelerating their efforts to secure related technologies. Intel has begun to make a full-fledged entry into the market by pursuing the acquisition of SambaNova Systems, while the Korean government has also announced separate plans to expand investment in this area as a countermeasure.

Lip Butane Intel Chief Executive Officer

On December 11, foreign media reported that Intel, which has received investment from the U.S. government, is in the final stages of acquiring the startup SambaNova Systems. According to the information and communications technology outlet Wired, Intel recently signed the acquisition agreement after rumors of the deal had spread. Although some variables remain before the deal is finalized, the local industry is closely watching this as a strategic decision by Intel. SambaNova, founded by Stanford University faculty, possesses NPU technology specialized for inference operations of large language models (LLMs).

What stands out is that Lip Butane, Chief Executive Officer of Intel, is already well acquainted with SambaNova. Before becoming CEO of Intel, Butane ran a venture capital firm. Due to this connection, CEO Butane currently serves as the chairman of SambaNova's board of directors. This case differs from typical mergers and acquisitions (M&A), as the acquiring company already has substantial knowledge of the target company and both sides are aware of their complementary strengths, suggesting the deal is being pursued with these factors in mind. Wired analyzed that through this deal, Intel aims to compete with Nvidia’s GPUs and establish a strong position in the NPU market.

President Lee Jae-myung is speaking at the K-Semiconductor Vision and Development Strategy Report Meeting in the AI Era held at the Yongsan Presidential Office on the 10th. Photo by Yonhap News Agency

The Korean government has also made a bold move to foster domestic technology following the introduction of 260,000 Nvidia GPUs. On December 10, with President Lee Jae-myung in attendance, the Ministry of Trade, Industry and Energy announced the "K-Semiconductor Vision and Development Strategy in the AI Era," presenting a blueprint for the development of AI semiconductors that encompasses not only memory but also system semiconductors. Minister Kim Jeonggwan stated that the government would focus investment on NPU development as part of its semiconductor strategy for the AI era.

The government plans to invest a total of 1.2676 trillion won in research and development (R&D) by 2030, focusing on AI inference-specialized fields such as on-device AI semiconductors and intelligent semiconductors (PIM), where there is no absolute leader. To ensure that chips designed by fabless companies can be smoothly produced domestically, a public-private partnership is considering establishing a "coexistence foundry" (12-inch, 40nm-class) with a total investment of 4.5 trillion won.

At the event, in response to Intel’s move to acquire SambaNova, many leading figures responsible for the future of Korea’s NPU industry attended. Promising domestic AI semiconductor startups such as FuriosaAI, Rebellions, and DeepX gathered at the Presidential Office to confirm the government’s support and solidify their determination to take on the global market.

Ryu Sujeong, a professor at Seoul National University who previously managed the NPU company Sapeon, said at the event, "The data center infrastructure planned by the government will play a very important role in creating domestic use cases."

This content was produced with the assistance of AI translation services.