SambaNova raises $1B in Series F funding, reaching $11B valuation

SambaNova Systems, an AI chip maker based in Palo Alto, has successfully raised $1 billion in its Series F funding, achieving a valuation of $11 billion. This funding round, led by General Atlantic, marks a significant milestone for the company just five months after its previous $350 million Series E round.

CEO and co-founder Rodrigo Liang informed TechCrunch that additional investors are anticipated to join in the coming weeks, with the second closing likely to be completed shortly. This latest funding follows SambaNova's unveiling of its SN50 chip earlier this year, enhancing its position in the competitive AI market.

SambaNova's Growth and Strategic Partnerships

SambaNova has been in talks with Intel regarding a potential acquisition, valuing the company at approximately $1.6 billion. However, Liang remains noncommittal about the company’s independence, stating, "We’re always being approached." He suggests that the momentum in the AI sector may lead the company towards an eventual public offering.

In addition to its funding success, SambaNova has strengthened its partnership with Intel, which has been a backer since its Series C round. The two companies are collaborating on AI inference development based on Intel's Xeon chip, leveraging their combined resources to bring innovative products to market.

Major Client Wins and Market Implications

Recently, SambaNova was selected by JPMorgan Chase as an “inference-infrastructure partner.” The company's SN40L and SN50 systems are set to enhance secure, on-premises AI inference at the bank. Liang emphasized the significance of this deal, stating, "Having JPMorgan Chase decide they’re going to use SambaNova for their inference solution is a big deal." This partnership signals a shift in the banking industry towards more secure, private infrastructures.

Liang believes that this trend will resonate beyond banking, as enterprises and governments begin to build their own secure infrastructures for AI. He noted that most growth in AI has been among tech's model makers and frontier labs, leaving substantial revenue potential for companies like SambaNova.

Future Developments and Customer Base

SambaNova launched its SN40L chip in September 2023 and plans to make it available both in the cloud and on-premises by November 2023. The next-generation SN50, unveiled in February 2026, is expected to begin shipping in the latter half of 2026, with SoftBank as its first deployment partner.

The company targets three types of customers: sovereign clouds funded by governments, neoclouds, and enterprises building their own systems. Alongside JPMorgan, its customer list includes Saudi Aramco and various Japanese firms.

With the proceeds from this funding round, SambaNova aims to scale its operations and secure its supply chain to meet the growing demand. Liang highlighted the importance of these funds in fulfilling orders and procuring necessary materials.

• Funding raised: $1 billion
• Valuation: $11 billion
• Previous funding: $350 million Series E
• Key partners: Intel, JPMorgan Chase, SoftBank
• Upcoming products: SN40L (Nov 2023), SN50 (H2 2026)