Nvidia is in advanced talks to acquire Israeli AI startup AI21 Labs for $2-3 billion, up from the company's last known valuation of $1.4 billion in 2023, according to reports from Israeli financial daily Calcalist.
The deal would function primarily as an acquihire targeting AI21's approximately 200 employees with advanced academic degrees and rare AI expertise, at an implied cost of roughly $10-15 million per employee, and would mark Nvidia's fourth major Israeli acquisition.
The potential acquisition comes as Nvidia expands its Israeli operations, announcing plans this month to build a campus in Kiryat Tivon housing up to 10,000 employees by 2031, with CEO Jensen Huang describing Israel as the company's "second home."
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