Intel Corp. is said to have made a more than $2 billion offer to buy SiFive Inc., a startup developing processor technology based on the open-source RISC-V instruction set architecture.

Bloomberg reported the acquisitions talks today, citing multiple sources familiar with the matter. The deal would represent one of Intel’s biggest acquisitions in recent memory if SiFive agrees to the terms. Intel paid $2 billion in 2019 to acquire another chip startup, Habana Labs Ltd., that developed artificial intelligence processors.

SiFive also has a presence in the AI chip market but focuses on other areas as well. It provides chip blueprints that customers can use to build processors for devices ranging from “internet of things” gadgets to data center servers. The San Mateo, California-based startup also sells software with which customers can customize its chip blueprints if they’re working on projects with specialized requirements.

SiFive’s chip designs stand out from most competing products in that they’re based on the RISC-V instruction set architecture. Most processor startups use an instruction set architecture from Arm Ltd. for their products.

A modern processor is based on not one but multiple blueprints. There’s the blueprint that describes the chip’s hardware design, such as the number of transistors it contains and their arrangement. Another blueprint, the instruction set architecture, describes what computing operations those transistors can carry out. The computing operations detailed in the instruction set architecture are the basic building blocks of software.

Chip makers rarely build their processors from scratch. Instead, they usually license the proprietary instruction set architecture of Arm, which charges a fee for the technology. The RISC-V instruction set architecture that SiFive uses to power its chips, in contrast, is an open-source architecture that is available free of charge.

The nonprofit industry group that maintains RISC-V promises several advantages over proprietary alternatives. The group says that the instruction set architecture’s open-source license gives chip engineers more flexibility to customize the technology for a project’s requirements. Moreover, the increased customizability can also allow the software developers writing the applications that will run on the chip to play a bigger role in the silicon design process.

In the case of Intel, however, there may be a different set of considerations behind the company’s reported bid for SiFive.

Arm, whose instruction set architecture is the go-to choice for many chip projects, is currently in the process of being acquired by Nvidia Corp. in a $40 billion deal. A number of chip industry players have voiced concerns that Nvidia may limit the access of competitors to Arm’s technology if the acquisition is allowed to go through. That concern may potentially lead to stronger industry interest in the RISC-V architecture given how it’s available under a free open-source license.

By buying SiFive, Intel could potentially position itself to address that future demand. But it’s reportedly far from certain that the companies will ink a deal. SiFive has received offers from other bidders besides Intel, Bloomberg’s sources said, adding that the startup may eventually opt against a sale and raise funding instead.

If multiple bidders are indeed involved, competing offers may drive the eventual acquisition price above the more than $2 billion sum Intel is said to have offered. Such a deal would represent one of the biggest startup acquisitions in recent memory not only for Intel but the entire chip industry.

Photo: Intel