Intel is negotiating to purchase the AI processor manufacturer SambaNova, which has been collaborating with bankers to assess interest from prospective buyers, according to reports.

Any agreement would probably assess SambaNova at less than the $5 billion it achieved in a 2021 funding round, and discussions are still in the initial phases with no guarantee that the companies will come to a consensus, as per reports.

A possible agreement may enhance Intel's AI goals, as attempts to establish a foothold in the AI GPU sector with chips marketed as a more affordable option to Nvidia's dominant processors have failed to yield results.

Intel CEO Lip-Bu Tan's investment company, Walden International, was one of SambaNova's initial backers, and the chipmaker's investment division, Intel Capital, is also a stakeholder. The firm has also garnered support from SoftBank's Vision Fund, an investor in Intel.

SambaNova, a company that creates specialized AI chips, appointed Tan as executive chairman last year.

Since April, Intel has garnered a series of multibillion-dollar investments from Nvidia and Japan's SoftBank along with an unmatched stake from the U.S. government, bolstering its balance sheet.

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Intel seeks to reenter the AI graphics processor market next year with a new GPU.

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Intel is an American tech firm that designs and produces semiconductors, especially computer CPUs such as the Intel Core and Xeon processors.

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Established in 1968, it is recognized for its contribution to integrated electronics and its emphasis on data-oriented technologies such as AI, self-driving vehicles, and cloud computing. Intel aims to influence the future of technology to build an improved world.