A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration

Nvidia in advanced talks to buy Israel's AI21 Labs for up to $3 billion, report says

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JERUSALEM, Dec 30 : ‌Nvidia is in advanced talks to buy Israel-based AI startup AI21 Labs for as much as $3 billion, the Calcalist financial daily reported on Tuesday.

Nvidia declined to comment, while AI21 was not immediately available to comment.

A 2023 funding round valued AI21 at $1.4 billion. Nvidia and Alphabet's Google participated in that funding.

AI21, founded in 2017 ‌by Amnon Shashua and two others, is among ‌a clutch of AI startups that have benefited from a boom in artificial intelligence, attracting strong interest from venture capital firms and other investors.

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Shashua is also the founder and CEO of Mobileye, a developer of self-driving car technologies.

Calcalist said AI21 has long been up for sale and talks ‍with Nvidia have advanced significantly in recent weeks. It noted that Nvidia's primary interest in AI21 appears to be its workforce of roughly 200 employees, most of whom hold advanced academic degrees and "possess rare expertise in artificial intelligence ​development."

Calcalist said the deal to ‌buy AI21 is estimated at between $2 billion and $3 billion.

Nvidia, which has become the most valuable company in history at more than $4 ​trillion, is planning a large expansion in Israel with a new R&D campus ⁠of up to 10,000 employees in ‌Kiryat Tivon, just south of the port city of Haifa - Israel's ​third-largest city.

Nvidia CEO Jensen Huang has described Israel as the company’s "second home."

Nvidia has said that when completed, the campus will include ‍up to 160,000 square meters (1.7 million square feet) of office space, parks ⁠and common areas across 90 dunams (22 acres), inspired by Nvidia's Santa Clara, California, headquarters. ​Nvidia expects construction to ‌begin in 2027, with initial occupancy planned for 2031.

(Reporting ‍by ​Steven Scheer; Editing by Lisa Shumaker)

Source: Reuters

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