Nvidia Backs Thinking Machines with Multiyear Partnership and Major Investment Despite Internal Turmoil
Summary
Nvidia doubles down on a high-stakes bet, announcing a multiyear partnership and major investment in AI startup Thinking Machines — valued at over $12 billion — even as the company faces internal turmoil including the firing of its CTO and multiple employee resignations.
Key Points
- Nvidia and Thinking Machines announce a multiyear strategic partnership, with the AI startup deploying at least a gigawatt of Nvidia's Vera Rubin systems to build its models and platforms starting next year.
- Nvidia makes a significant undisclosed investment in Thinking Machines, which carries a valuation exceeding $12 billion and has raised $2 billion in funding, with reports of seeking an additional $5 billion at a $50 billion valuation.
- The partnership comes amid internal turbulence at Thinking Machines, including the firing of co-founder and CTO Barret Zoph, four subsequent employee resignations, and an earlier co-founder departure, raising questions about the high-risk, high-reward nature of Nvidia's bet.