AI chip maker SambaNova raises $1B at $11B valuation, 5 months after last mega round

SambaNova Systems, a prominent player in AI chip development, has successfully raised $1 billion in its Series F funding round, achieving an impressive valuation of $11 billion. This funding round, led by General Atlantic, marks a significant milestone for the Palo Alto-based startup, with expectations for additional investors to join in the near future. Rodrigo Liang, CEO and co-founder of SambaNova, shared insights with TechCrunch, indicating that more investors are anticipated in the coming weeks, potentially concluding the second phase of their funding round. This latest round follows the company’s previous $350 million Series E funding launched just five months ago, which coincided with the introduction of their SN50 chip. Furthermore, SambaNova had previously been in discussions with Intel regarding a potential acquisition valued at approximately $1.6 billion, as reported by Bloomberg News in December. When questioned about the implications of their recent funding rounds for the company’s independence, Liang remained ambiguous, citing ongoing interest from various parties. He acknowledged that while the option for acquisition remains, the company is primarily focused on maintaining momentum and growth, with public offerings on the horizon. SambaNova's partnership with Intel has strengthened over time, with Intel being an investor since the Series C round. Recently, the two firms announced a multi-year collaboration aimed at enhancing AI inference development using Intel’s Xeon chip technology, allowing them to co-develop and bring products to market together. In a significant development, SambaNova has been chosen by JPMorgan Chase as their inference-infrastructure partner. The bank’s decision to utilize SambaNova’s SN40L and SN50 systems for secure on-premises AI inference signals a notable shift in the banking sector towards building private infrastructure, moving away from dependence on cloud services. Liang emphasized that this partnership with a leading institution like JPMorgan Chase sends a strong message to the banking industry about the importance of secure, independent AI infrastructure. He anticipates that this trend will extend beyond banking as enterprises and governments embark on their AI journeys, with substantial revenue opportunities still available in the market. SambaNova recently launched the SN40L in September 2023, planning to offer it for cloud and on-premises use starting November 2023. The SN50, introduced earlier this year, is expected to ship to customers by mid-2026, with SoftBank as its initial deployment partner. With a focus on premium inference capabilities, SambaNova is positioned to handle complex AI models that span trillions of parameters. The company caters to a diverse customer base, including sovereign clouds funded by governments, neoclouds, and enterprises developing their own AI solutions. Notable clients include JPMorgan Chase, Saudi Aramco, and several firms in Japan. The new capital will be instrumental in scaling operations and securing the supply chain to meet the surging demand for AI technology. Liang highlighted the importance of this funding in ensuring the company can fulfill upcoming orders and acquire necessary materials over the next year. The funding round also attracted participation from a variety of investors including Seligman Ventures, T. Rowe Price Associates, and Capital Group, alongside new and existing partners such as A&E Investment, BlackRock, and Qatar Investment Authority (QIA).