Intel Corp (NASDAQ:INTC) reportedly intends to invest an additional $15 million in SambaNova.

Intel Expands SambaNova Investment, Boosts Ownership Stake

The move that would raise its ownership to about 9%, Reuters reported on Wednesday, citing corporate records.

The chipmaker had already invested $35 million in February 2026, increasing its stake to 8.2% from 6.8% a year earlier.

The companies also announced a strategic collaboration earlier this year.

SambaNova develops chips tailored for powering generative AI models.

CEO-Linked Startup Deals Raise Governance Questions

The investment is part of a broader pattern. Intel has recently backed multiple startups tied to its CEO, Lip-Bu Tan, a longtime venture capitalist whose funds have stakes in several of these firms.

These include OPAQUE Systems, EPIC Microsystems and 3D Glass Solutions.

Corporate governance experts have flagged such deals as potential red flags, noting that they could indirectly boost the personal financial interests of the CEO.

However, at least one expert said recent disclosures do not necessarily indicate wrongdoing, the report noted.

Trump Once Called Intel CEO ‘Highly Conflicted'

Tan's investment holdings have come under scrutiny in the past. In April 2025, reports emerged that venture firms had investments in more than 600 Chinese companies, some of which were alleged to have potential military ties.

This led President Donald Trump to call for his resignation, describing the Intel CEO as "highly conflicted."

A White House statement later said Tan addressed those concerns during an Oval Office meeting, paving the way for collaboration on U.S. national and economic security.

By September, Trump publicly applauded Intel's surging stock price after Tan struck a deal with Nvidia.

Intel Defends Oversight, Cites Industry Norms

In a statement to the publication, Intel said it maintains strict governance policies and board oversight to ensure decisions serve shareholders.

The company added that it was already an investor in several of these startups before Tan took over as CEO.

It also noted that overlapping investments are common in specialized sectors like semiconductors and advanced computing.

Intel did not immediately respond to Benzinga's request for comments.

SambaNova's AI Push Comes Amid Challenges

SambaNova, which aims to compete with Nvidia Corp (NASDAQ:NVDA) in AI hardware, has faced some headwinds, including layoffs and fundraising challenges.

Moreover, a potential acquisition by Intel did not materialize.

The startup has since shifted focus toward AI inference — the computing power used to run models like chatbots — and says it is aligning its strategy and new chip offerings around this demand.

Price Action: Intel closed at $48.03, up 8.84% on Wednesday and rose further in after-hours trading to $48.16, a gain of 0.27%, according to Benzinga Pro.

According to Benzinga's Edge Stock Rankings, Intel shows strong medium and long-term growth potential but weaker short-term performance, with its Momentum rating in the 92nd percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.