Nvidia Nears $2-3 Billion Acquisition of AI21 Labs in Massive Talent Grab
Summary
Nvidia approaches a $2-3 billion acquisition of struggling Israeli AI startup AI21 Labs, paying an extraordinary $10-15 million per employee to secure 200 specialized AI workers in what amounts to the tech industry's most expensive talent grab amid fierce competition for artificial intelligence expertise.
Key Points
- Nvidia is in advanced talks to acquire Israeli AI startup AI21 Labs for $2-3 billion, primarily focused on acquiring the company's 200-person workforce with specialized AI expertise
- The deal would mark Nvidia's fourth major Israeli acquisition and second-largest after the $7 billion Mellanox purchase, effectively functioning as an acquihire at $10-15 million per employee
- AI21 Labs has struggled to compete with leading AI companies like OpenAI, generating only around $50 million in annual revenue despite being valued at $1.4 billion in 2023