Vista Equity Partners and Intel to Invest in AI Chip Startup SambaNova

• Vista Equity, with over $100 billion in assets and a stated focus on 'enterprise software companies exclusively,' is partnering with Cambium Capital to invest in the AI chipmaker competing against market leader Nvidia
• SambaNova was valued at $5 billion in 2021 by SoftBank's Vision Fund 2 but faced challenges including 2024 layoffs; rivals Cerebras recently raised funding at a $23 billion valuation while Groq secured a $20 billion licensing deal with Nvidia
• Intel CEO Lip-Bu Tan serves as SambaNova's executive chairman; the startup has raised over $1 billion since 2017 and recently told employees it crossed its fiscal year sales target

Summary

Vista Equity Partners is leading a Series E funding round exceeding $350 million for AI chip startup SambaNova Systems, marking a significant departure from Vista's traditional enterprise software focus. The deal is being executed through a partnership with venture capital firm Cambium Capital, with Intel also participating as an investor.

Key Financial Details:

• Current funding round: Over $350 million
• Vista's total assets under management: Over $100 billion
• SambaNova's 2021 valuation: $5 billion (led by SoftBank Vision Fund 2)
• Previous Intel acquisition talks: Approximately $1.6 billion including debt (stalled)
• Total capital raised since 2017: Over $1 billion

Strategic Context:

This investment represents Vista's rare move outside its exclusive enterprise software mandate, as software stocks face pressure from AI disruption. Intel continues backing SambaNova despite failed acquisition discussions; Intel CEO Lip-Bu Tan serves as SambaNova's executive chairman.

SambaNova competes with Nvidia in the AI inference chip market, which has seen heightened activity. Competitor Cerebras Systems recently raised funding at a $23 billion valuation, while rival Groq was acquired for $20 billion in licensing and talent deals. OpenAI has reportedly explored compute supply agreements with both Cerebras and Groq as alternatives to Nvidia GPUs.

Company Status:

Despite facing challenges including 2024 layoffs, SambaNova recently reported exceeding its fiscal year sales targets. The startup has pivoted focus toward AI inference and cloud services. The funding round remains ongoing with final terms subject to change.