Nvidia (NASDAQ:NVDA) is reportedly in advanced discussions to acquire AI21 Labs, an Israel-based artificial intelligence startup, in a deal potentially valued at up to $3 billion, according to a report from Calcalist.
While Nvidia declined to comment on the ongoing talks, AI21 Labs did not immediately provide a statement.
Founded in 2017 by Amnon Shashua, who is also the CEO of Mobileye, AI21 Labs has become a key player in the AI sector, benefiting from the industry's rapid growth.
The startup, which secured $1.4 billion in a 2023 funding round, was valued at $1.4 billion, with major investors including Nvidia and Alphabet’s Google.
AI21 has long been available for acquisition, and the negotiations with Nvidia have reportedly intensified in recent weeks.
Nvidia’s primary interest in AI21 appears to be the company’s team of approximately 200 employees, many of whom hold advanced academic degrees and possess rare expertise in AI development.
Nvidia, now the world’s most valuable company with a market capitalization exceeding $4 trillion, is also expanding its presence in Israel.
The company is planning a major R&D campus in Kiryat Tivon, just south of Haifa, which will house up to 10,000 employees.
The new campus, modeled after Nvidia's headquarters in Santa Clara, California, will span 160,000 square meters (1.7 million square feet) and is expected to break ground in 2027, with initial occupancy planned for 2031.
This acquisition, if finalized, would further solidify Nvidia's leadership in AI technology and expand its workforce in Israel, a region Nvidia CEO Jensen Huang has described as the company's "second home."