Nvidia in talks to acquire startup Reflection AI
The company is considering options for a takeover or increased investment in the developer of open-weight models, reports Financial Times.
Nvidia is discussing a potential deal with Reflection AI, which could involve a full acquisition of the startup or additional investments. The negotiations are at an early stage, and the final agreement may take various forms—from purchasing licenses to hiring key employees. Previously, a similar approach with Groq led to litigation, creating legal risks for Nvidia.
Reflection AI specializes in open-weight models, which allow corporate clients to run AI on their own infrastructure. This reduces costs and minimizes data leakage risks.
The startup has already attracted $800 million from Nvidia, and its valuation in March reached $25 billion. Among its investors is the fund 1789 Capital, whose partner is Donald Trump Jr., son of Donald Trump.
The Trump administration supports the development of American open-weight models as an alternative to Chinese developments. Nvidia founder Jensen Huang previously called for the creation of a national ecosystem of such models, emphasizing their role in innovation. The company has already invested tens of billions of dollars in AI projects, including the acquisition of the Hugging Face repository for $13 billion.
Reflection AI recently introduced the Beam model, which outperforms Western counterparts in efficiency tests while consuming 3–4 times fewer computational resources. The startup collaborates with the Pentagon and U.S. partners, such as South Korea. Both companies declined to comment on the negotiations.
Nvidia has not disclosed how much it is willing to pay for Reflection AI, but its interest is driven by a shortage of its own advanced AI models. The company is actively investing in startups to stimulate demand for its AI chips, which remain a key asset amid limited computational capacity.
