Nvidia Eyes $3 Billion Acquisition of AI21 Labs, Expanding Israeli Footprint

Nvidia is negotiating to acquire AI21 Labs, boosting its AI capabilities and expanding its Israeli presence. Valued at around $3 billion, AI21 is part of the thriving AI sector. The acquisition would include AI21's skilled workforce, amid Nvidia's major Israeli campus expansion plans.

Nvidia is in the final stages of discussions to acquire Israel-based AI startup AI21 Labs, with a purchase price that could reach $3 billion, according to a report by Calcalist financial daily. While Nvidia has declined to comment on the matter, AI21 was also unavailable for immediate response.

In a 2023 funding round, AI21 was valued at $1.4 billion, with participation from notable investors like Nvidia and Alphabet's Google. Founded in 2017 by industry stalwart Amnon Shashua and colleagues, AI21 has emerged as a leading player among AI startups, riding the wave of surging interest from venture capitalists and investors globally.

Shashua, also the founder and CEO of Mobileye, has positioned AI21 as a sought-after entity. Calcalist notes that recent negotiations with Nvidia have progressed substantially, with Nvidia showing a keen interest in AI21's team, boasting roughly 200 employees with high-level expertise in AI. Nvidia's broader strategy includes large-scale expansion in Israel, with plans for an extensive R&D campus by 2031.

(With inputs from agencies.)