NVIDIA is in advanced negotiations to acquire Israel’s AI21 Labs in a deal that could reach as much as $3 billion, according to the Israeli financial daily Calcalist.
The report said discussions have accelerated in recent weeks, though neither company has publicly commented on the talks.
AI21 Labs, founded in 2017 by Amnon Shashua and two co-founders, develops large language models and generative AI systems.
The company last raised funding in 2023 at a valuation of about $1.4 billion, with investors including Nvidia and Alphabet’s Google. Shashua is also the founder and CEO of Mobileye, the autonomous driving technology company.
Calcalist reported that Nvidia’s main interest centers on AI21’s roughly 200-person workforce, which it described as highly specialized in artificial intelligence research and development.
The outlet said AI21 has been open to a sale for some time and that current talks with Nvidia are among the most advanced to date.
Nvidia has been expanding its presence in Israel and is planning a major new R&D campus near Haifa that could eventually house up to 10,000 employees.
CEO Jensen Huang has previously referred to Israel as the company’s “second home.”
Why This Matters Today
If completed, the transaction would mark another move by Nvidia to deepen its role not only in AI hardware but also in model development and talent acquisition.
You are watching the company pair its chip dominance with software and research capabilities as demand for generative AI continues to rise.
The report also underscores the consolidation pressure facing AI startups.
Rapid growth in model training costs and competition from large technology firms is driving founders to seek strategic buyers with the capital and infrastructure to scale their systems.
Our Key Takeaways:
- Nvidia is reportedly in advanced talks to acquire AI21 Labs for between $2 billion and $3 billion, according to Calcalist, with neither company having made a public comment yet.
- AI21 Labs, valued at $1.4 billion in 2023 and backed by Nvidia and Google, develops large language models and was founded by Mobileye CEO Amnon Shashua and partners.
- A potential deal would expand Nvidia’s AI talent base and follow its broader expansion in Israel, including plans for a large new research and development campus near Haifa.
You may also want to check out some of our other tech news updates.
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