Nvidia Eyes $2–3B AI21 Talent Acquisition

Nvidia is in advanced talks to acquire Israeli AI startup AI21 Labs in a deal valued at an estimated $2–3 billion, according to reports. If finalized, the transaction would be well above AI21’s last known valuation of about $1.4 billion from its 2023 funding round and would be driven largely by talent acquisition rather than proprietary technology.

AI21 recently raised roughly $300 million in a funding round led by Nvidia and Google, though the company did not officially disclose its valuation. While Google had previously explored a potential takeover, discussions with Nvidia have reportedly gained momentum in recent weeks and reached senior leadership levels.

The primary appeal for Nvidia appears to be AI21’s team of around 200 employees, many of whom are highly credentialed AI researchers and engineers. At the proposed valuation, the deal implies a cost of roughly $10–15 million per employee, underscoring the intense global competition for top-tier AI talent and pointing to an acquihire-style transaction.

Founded in 2017 by Professor Amnon Shashua, Professor Yoav Shoham, and Ori Goshen, AI21 was initially positioned as Israel’s challenger to leading AI model developers such as OpenAI and Anthropic. However, rapid advances by larger players prompted a strategic shift. Earlier this year, AI21 shut down its consumer product Wordtune and refocused on enterprise-oriented language models prioritizing accuracy and reliability. Its flagship product, Maestro, claims to boost model accuracy by up to 50%, though annual revenues are estimated at around $50 million.

For Nvidia CEO Jensen Huang, the acquisition would further strengthen the company’s presence in Israel, following earlier deals such as the purchase of Mellanox. While relatively small compared with Nvidia’s cash reserves, the move highlights a clear strategic priority: locking in scarce AI talent as competition across chips, models, and platforms intensifies.