Jerusalem, Dec 30 — Nvidia is in advanced discussions to acquire Israeli artificial intelligence startup AI21 Labs in a deal that could be valued at up to $3 billion, according to a report by Israeli financial daily Calcalist.
The U.S. chipmaker declined to comment on the report, while AI21 Labs was not immediately available for comment.
AI21 was last valued at $1.4 billion during a funding round in 2023, which included participation from Nvidia and Google. The startup has emerged as one of several AI firms benefiting from heightened global investment interest in artificial intelligence technologies.
Founded in 2017 by Amnon Shashua and two co-founders, AI21 specializes in large language models and advanced AI systems. Shashua is also the founder and chief executive of autonomous driving technology firm Mobileye.
According to Calcalist, AI21 has been exploring a potential sale for some time, with negotiations with Nvidia intensifying in recent weeks. The report said Nvidia’s primary interest lies in AI21’s team of roughly 200 employees, most of whom possess advanced academic backgrounds and specialized expertise in AI development.
The proposed acquisition is estimated to be worth between $2 billion and $3 billion.
Nvidia, which recently surpassed a $4 trillion market valuation, is also planning a major expansion in Israel. The company is developing a large research and development campus in Kiryat Tivon, near the northern port city of Haifa.
Chief Executive Jensen Huang has previously referred to Israel as Nvidia’s “second home.” The planned campus is expected to span up to 160,000 square meters and accommodate as many as 10,000 employees. Construction is slated to begin in 2027, with initial occupancy expected in 2031.
