(Reuters) -Buyout firm Silver Lake is in exclusive discussions to purchase a majority stake in Intel's programmable chip business, Altera, a person familiar with the matter told Reuters on Tuesday.

The deal is likely to value Altera at about $9 billion, two sources familiar with the deal talks said, requesting anonymity as the discussions were confidential.

Silver Lake is finalizing the details of the investment. The exact size of the stake has yet to be determined and the discussions could be delayed, according to one of the sources.

Silver Lake declined to comment on the deal, while Intel did not immediately respond to a Reuters request for comment.

Bloomberg News first reported the development earlier on Tuesday.

Silver Lake and Bain Capital were among potential bidders likely to compete for a minority stake in Altera, which Intel acquired for nearly $17 billion in 2015, Reuters had exclusively reported in November.

Private equity firm Francisco Partners had also expressed interest in a deal for a stake in Altera.

The transaction is expected to provide Intel with a much-needed cash boost, as the chipmaker explores various options to cut overall costs, which include selling businesses it can no longer afford to finance from its previously substantial profits.

"We remain focused on selling a stake in Altera on a path to its IPO in the coming years. To that end, we have begun discussions with potential investors and expect to conclude in early 2025," former Intel CEO Pat Gelsinger told analysts during a post-earnings call in October.

Intel's rivals, Taiwan Semiconductor Manufacturing Co and Broadcom, are each eyeing potential deals that could split the U.S. chipmaking icon into two separate entities, the Wall Street Journal reported on Saturday.

In late January, the chipmaker reported December-quarter results that beat analysts' low expectations, while its projected revenue for the current quarter missed estimates the company grapples with tepid demand for its data center chips and as investors await the appointment of a new CEO.