Nvidia Nearing $3 Billion Acquisition Deal with AI21 Labs

• AI21 Labs, founded in 2017 and valued at $1.4 billion in its 2023 funding round, specializes in AI development with most employees holding advanced degrees
• Nvidia is already planning a massive $430 million R&D campus near Haifa spanning 1.7 million square feet, with construction beginning in 2027
• The acquisition would strengthen Nvidia's position as the world's most valuable company at over $4 trillion market cap amid the AI boom

Nvidia in Advanced Talks to Acquire AI21 Labs for Up to $3 Billion

Nvidia is reportedly in advanced negotiations to acquire Israeli AI startup AI21 Labs for between $2-3 billion, according to Israeli financial daily Calcalist. The talks have intensified significantly in recent weeks, with AI21 having been on the market for an extended period.

Founded in 2017 by Amnon Shashua (also founder and CEO of Mobileye) and two others, AI21 Labs specializes in artificial intelligence development. The company raised $155 million in a 2023 funding round that included participation from both Nvidia and Google, valuing the startup at $1.4 billion at the time.

Nvidia's primary interest appears to be AI21's workforce of approximately 200 employees, most holding advanced degrees and possessing rare AI development expertise. This talent acquisition strategy aligns with Nvidia's aggressive expansion plans in Israel, where CEO Jensen Huang has described the country as the company's "second home."

The chip giant is developing a major R&D campus near Haifa, spanning 22 acres with 1.7 million square feet of office space. Construction is slated to begin in 2027 with initial occupancy planned for 2031.

This potential acquisition comes as Nvidia maintains its position as the world's most valuable company with a market capitalization exceeding $4 trillion, driven by explosive demand for AI chips. The deal would further consolidate Nvidia's dominance in the AI sector while strengthening its presence in Israel's thriving tech ecosystem.

Both companies declined to comment on the reports. If completed, this acquisition would represent one of the largest tech deals involving an Israeli company in recent years.