Private equity firm Vista Equity Partners is leading a funding round exceeding $350 million in artificial intelligence chip startup SambaNova Systems, marking an unusual shift from its traditional enterprise software investments, according to people familiar with the matter. The AI chip funding round, classified as Series E, includes participation from existing backer Intel Corp, which plans to invest approximately $100 million with potential commitments reaching $150 million, sources told Reuters.
Vista Equity Partners is partnering with early-stage venture capital firm Cambium Capital for the oversubscribed investment round. The AI computing startup is pursuing this capital to compete with market leader Nvidia Corp and address rising demand for inference chips utilized in AI applications, according to the sources.
Vista Equity Partners Expands Beyond Software Focus
For Vista, a firm managing over $100 billion in assets that traditionally “invests exclusively in enterprise software companies” according to its website, the SambaNova investment represents a significant departure from its core strategy. The private equity giant has built its reputation on major software acquisitions, including cloud computing company Citrix Systems in 2022 and software company Nexthink in 2025.
However, the timing reflects broader market dynamics affecting technology investments. Software stocks have experienced considerable pressure in recent months as artificial intelligence has evolved from a growth driver to a potential disruptive force for many companies. A global software share selloff this week eliminated nearly $1 trillion in value as investors reassess company valuations.
Growing Interest in AI Hardware and Inference Chips
Meanwhile, investor appetite for AI hardware has intensified following numerous deals involving Nvidia competitors. AI companies are actively seeking chips capable of running inference operations quickly and efficiently, creating opportunities for alternative chipmakers.
Additionally, recent funding activity demonstrates robust investor confidence in the AI chip sector. AI chipmaker Cerebras Systems announced this week it secured $1 billion in a funding round valuing the company at $23 billion, with Tiger Global leading the investment and participation from Donald Trump Jr.-backed 1789 Capital. In December, another SambaNova competitor, Groq, agreed to license its technology to Nvidia for $20 billion in an all-cash transaction while transferring much of its team.
OpenAI has reportedly held discussions with both Groq and Cerebras regarding compute supply agreements as the AI lab explores alternatives to Nvidia GPUs to satisfy fast-inference requirements, Reuters reported earlier.
SambaNova’s Funding History and Strategic Pivot
The current funding round follows unsuccessful acquisition discussions with Intel. Intel’s CEO Lip-Bu Tan, who also serves as SambaNova’s executive chairman, had previously explored purchasing the startup for approximately $1.6 billion, including debt, according to earlier Reuters reporting.
In contrast to its current valuation discussions, SambaNova achieved a $5 billion valuation during a 2021 funding round led by SoftBank’s Vision Fund 2. The startup has encountered difficulties since then, conducting workforce reductions in 2024. Since its founding in 2017, the company has raised more than $1 billion from investors and has redirected its strategic focus toward AI inference and cloud services.
According to one source, the company informed employees last month that it had surpassed its sales targets for the fiscal year, suggesting improved operational performance.
Reuters could not confirm the exact valuation for the current Series E round, and sources cautioned that fundraising remains ongoing with final terms subject to potential changes. Vista, SambaNova, and Intel all declined to comment on the investment, while Cambium did not immediately respond to requests for comment.
