Nvidia in $2–3B talks to buy AI21 Labs, strengthens AI stack

Nvidia said to be in talks to acquire AI21 for up to $3 billion as AI deal rush intensifies

  • NVIDIA is in advanced talks to buy Israel-based AI21 Labs for about $2 billion to $3 billion.
  • AI21 Labs offers large language model (LLM) and generative AI expertise and has roughly 200 employees.
  • The potential deal fits Nvidia’s move beyond chips into software, inference, and broader control of the AI stack.
  • The talks occur amid a surge in large AI-related transactions and other recent moves by Nvidia, including an expensive licensing deal for inference technology.

Nvidia is reportedly in advanced discussions to acquire Israel-based AI21 Labs for roughly $2 billion to $3 billion, according to a report. The report said AI21 Labs was last valued at $1.4 billion in 2023, when Nvidia and Google participated in a funding round (see the report).

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Founded in 2017 by Amnon Shashua and two others, AI21 Labs has developed a large language model and generative AI products. Shashua also leads Mobileye. The company has about 200 employees, many with advanced academic degrees.

Definition: LLM (large language model) — an AI model trained on large text datasets to generate or understand human language. Definition: Inference — running a trained AI model to produce outputs for users or applications.

The talks align with Nvidia’s stated effort to expand beyond GPUs into software, inference, and the broader AI stack. Nvidia recently entered a non-exclusive licensing agreement with Groq for inference technology that media reports said could be worth about $20 billion. Analysts at Citi, Truist, Stifel, and UBS have reiterated “Buy” ratings on Nvidia.

Nvidia plans a large expansion in Israel, including a new research and development campus in Kiryat Tivon that could eventually employ up to 10,000 people and cover about 160,000 square meters across 90 dunams. CEO Jensen Huang has called Israel his “second home.” Construction is targeted to begin in 2027 with initial occupancy by 2031.

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The potential acquisition comes amid broader AI deal-making, including SoftBank Group’s recent agreement to buy digital infrastructure investor DigitalBridge Group for about $4 billion. On social platforms, retail sentiment for Nvidia was reported as “bearish” even as the company’s stock rose about 40% so far in 2025.

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