M&A

Nvidia weighs buyout of Reflection AI at $25B valuation

What's the deal? Nvidia is in talks to deepen its investment in open-source startup Reflection AI or acquire it outright, the Financial Times reported on October 10, citing people with direct knowledge. Nvidia is already a major backer, having invested $800 million in the startup. Reflection AI, founded by two former DeepMindDealroom has a profile for this one. Try Dealroom → researchers, was raising new funding at a $25 billion pre-money valuation.

What's the endgame? A deal could take several forms, including an acqui-hire arrangement in which Nvidia would hire staff and license technology rather than pursue a full acquisition. That structure could help avoid a lengthy regulatory review.

Why now? An agreement could be reached in the coming weeks, according to the report. Talks remain at an early stage and could still fall apart.

The signal: For Nvidia, converting a financial stake into deeper control over an open-source AI developer would extend its reach beyond chips and into the models that run on them. The acqui-hire option also underscores how large tech firms are structuring AI deals to sidestep antitrust scrutiny.

Read more: Reuters

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