Nvidia in Early-Stage Talks to Acquire or Invest Further in Open-Weight AI Startup Reflection AI

Nvidia is in early-stage negotiations to acquire or deepen its stake in Reflection AI, a US startup focused on open-weight AI models, according to a Financial Times report citing people with direct knowledge of the matter. The discussions signal CEO Jensen Huang's push to extend Nvidia's influence beyond chip hardware into the open-model segment of the AI market.

Multiple deal structures are under consideration. These include an acqui-hire arrangement, in which Nvidia would hire Reflection AI's staff and license its technology; an agreement to supply the startup with additional chips; or an outright increase in Nvidia's existing equity investment. No final decision has been reached and the talks remain at an early stage.

Reflection AI had been targeting a valuation of around 25 billion dollars in earlier funding discussions, underscoring the premium investors have attached to firms building open-weight foundation models. A completed deal, in whatever form, would position Nvidia more directly in competition with other open-model efforts globally and complement its previously announced 11.9 billion dollar acquisition of Hugging Face.