Nvidia Explores $3 Billion Acquisition of Israel’s AI21 Labs

In a move that could further cement Israel’s position as a global leader in artificial intelligence, U.S. tech giant Nvidia is in advanced talks to acquire Israeli AI startup AI21 Labs for up to $3 billion, according to a report by Calcalist. The deal would mark a significant milestone in Nvidia’s growing presence in Israel and showcase the high value placed on Israeli innovation.

AI21 Labs, co-founded in 2017 by Amnon Shashua best known as the founder and CEO of Mobileye has become one of the top AI companies in Israel. It specializes in natural language processing and large language model technologies, attracting interest from major tech players including Google, which joined Nvidia in a previous $1.4 billion valuation round last year.

Sources indicate that Nvidia’s interest lies not only in AI21’s technology, but especially in its team of approximately 200 employees, most of whom hold advanced academic degrees and boast rare, cutting-edge expertise in artificial intelligence development. For Nvidia, the acquisition would be a strategic play to secure top-tier AI talent at a time when global demand for such capabilities is at an all-time high.

The reported price range of $2 billion to $3 billion reflects the soaring valuations in the AI sector, fueled by an ongoing boom in machine learning applications across industries. Neither Nvidia nor AI21 Labs have issued official statements, but reports suggest negotiations have progressed significantly in recent weeks.

This potential acquisition is only part of Nvidia’s broader commitment to Israel. The company recently announced plans to build a massive new R&D campus in Kiryat Tivon, near Haifa. Slated to house up to 10,000 employees, the facility will span 160,000 square meters and include parks and shared spaces, modeled after Nvidia’s Santa Clara headquarters. Construction is expected to begin in 2027, with first-phase occupancy targeted for 2031.

Nvidia CEO Jensen Huang has been vocal in his praise for Israel, calling it the company’s “second home.” That sentiment is now being backed by massive investment and a deepening integration with Israel’s world-class tech ecosystem.

For Israel, the deal reflects the continued global recognition of its status as the “Startup Nation.” With AI21 Labs on the verge of joining Nvidia’s growing Israeli portfolio, the future of artificial intelligence is being written in Hebrew, English, and code right in the heart of the Jewish state.

Support Israel’s innovation scene share this article and subscribe to our newsletter for more updates from the frontlines of Israeli tech excellence.