Nvidia plans to acquire Israeli AI company AI21 Labs for up to $3 billion

According to a report by the Israeli financial daily Calcalist on Tuesday, Nvidia (NVDA.O) is in deep negotiations to acquire the Israeli artificial intelligence startup AI21 Labs for between $2 billion and $3 billion. A funding round in 2023 valued AI21 Labs at $1.4 billion. Nvidia and Alphabet's Google (GOOG.O) participated in that funding round.

AI21 Labs was founded in 2017 by Amnon Shashua and two others, and is one of many startups benefiting from the AI boom. Shashua is also the founder and CEO of the autonomous vehicle technology developer Mobileye. AI21 Labs has long been seeking a sale, and negotiations with Nvidia have made significant progress in recent weeks.

Nvidia's main interest in AI21 Labs seems to lie in its team of about 200 employees, most of whom hold advanced degrees and possess "rare expertise in AI development." The acquisition amount translates to approximately $10 million to $15 million per employee.