Nvidia Looks to Strengthen Generative AI Push With AI21 Labs Acquisition
Published: 31 Dec 2025
Author: Precedence Research
Nvidia is reported to be in advanced negotiations to acquire Israel-based artificial intelligence startup AI21 Labs in a deal that could be worth as much as $3 billion, according to a report published by the Calcalist financial daily on Tuesday. The U.S. chipmaker declined to comment on the report, while representatives of AI21 Labs were not immediately available to provide a response.
A funding round completed in 2023 valued AI21 at $1.4 billion, with both Nvidia and Alphabet’s (GOOGL.O) Google taking part in the investment. Founded in 2017 by Amnon Shashua and two co-founders, AI21 is part of a broader wave of AI startups that have benefited from the surge in artificial intelligence, attracting strong interest from venture capital firms and other investors worldwide.
Shashua is also the founder and chief executive of Mobileye, a company that develops self-driving vehicle technologies. Calcalist reported that AI21 has been on the market for some time and that discussions with Nvidia have made significant progress in recent weeks. It added that Nvidia’s main attraction to AI21 appears to be its workforce of about 200 employees, most of whom hold advanced academic degrees and have rare expertise in artificial intelligence development.
Calcalist said the acquisition of AI21 is valued at an estimated $2 billion to $3 billion.Nvidia, which has become the most valuable company in history with a market value exceeding $4 trillion, is planning a major expansion in Israel, including a new R&D campus that could employ up to 10,000 people in Kiryat Tivon, south of the port city of Haifa, Israel’s third-largest city.
Nvidia CEO Jensen Huang has described Israel as the company’s “second home,” highlighting the strategic importance of the country in Nvidia’s global operations.
Nvidia has stated that when finished, its new campus will offer up to 160,000 square metres (1.7 million square feet) of office space, complemented by parks and communal areas across 90 dunams (22 acres), designed to mirror its headquarters in Santa Clara, California. The company plans to begin construction in 2027, with the first phase of occupancy expected in 2031.