## NVIDIA Reportedly Nears Acquisition of AI21 Labs in Potential $3 Billion Deal
Chip manufacturing behemoth NVIDIA is reportedly in advanced discussions to acquire AI21 Labs, a leading Israeli developer specializing in large-scale language models. According to a recent dispatch published by the Israeli financial media outlet *Calcalist*, the proposed transaction is estimated to be valued between $2 billion and $3 billion.
This potential purchase would mark NVIDIA’s fourth strategic acquisition in Israel and would represent its second-largest deal, following the monumental takeover of Mellanox. The primary rationale behind this substantial investment appears to be a focused "acquihire." AI21 Labs employs approximately 200 individuals, most of whom possess advanced academic degrees and sought-after expertise in cutting-edge artificial intelligence development. The high valuation suggests an implied cost of $10 million to $15 million for each specialized employee.
AI21 Labs stands out as one of the few Israeli companies dedicated to constructing and refining foundational, large-scale language models for AI applications. The firm has benefitted significantly from the global explosion in generative AI technology, attracting considerable attention from venture capital funds and major investors. Following a successful capital raise in 2023, the company's last confirmed valuation reached $1.4 billion.
Founded in 2017 by Amnon Shashua and two partners, AI21’s leadership carries significant clout in the tech world. Shashua is widely recognized as the founder and Chief Executive Officer of Mobileye, the autonomous vehicle technology leader. Notably, unconfirmed reports surfaced last summer suggesting that AI21 had completed a $300 million fundraising round, which was purportedly led by both NVIDIA and rival Google, though the company never formally confirmed these publications.
