Intel is nearing a deal to sell its Altera chip unit to private equity group Silver Lake as the semiconductor pioneer works to raise cash and catch up with rivals like Nvidia in the manufacture of chips for use in artificial intelligence.
Silver Lake will buy a majority stake in Altera, which makes programmable chips that tech companies can tailor to their AI needs, at a valuation of about $9bn, according to two people briefed on the matter.
Intel, which for months has been in talks to sell the unit as part of a broader plan to divest non-core assets, will continue to own a large minority equity stake.
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