Private equity firm Vista Equity Partners is investing over $350 million in AI chip startup SambaNova Systems, moving away from its usual focus on enterprise software. The funding round includes Intel Corp as an existing backer, planning to invest up to $150 million. The valuation of the round is still unknown.

Vista’s move to invest in SambaNova marks a departure from its typical enterprise software investments. Software stocks have been under pressure as AI disrupts the industry. Interest in AI hardware has grown, with Cerebras Systems raising $1 billion and SambaNova’s rival, Groq, striking a deal with Nvidia.

SambaNova’s funding comes after acquisition talks with Intel fell through. The startup was valued at $5 billion in 2021 but faced challenges and layoffs in 2024. It has raised over $1 billion since 2017 and shifted focus to AI inference and cloud services. The company recently surpassed its sales target for the fiscal year.

Read more at Yahoo Finance: Vista Equity Partners and Intel to lead investment in AI chip startup SambaNova, sources say