While Nvidia declined to comment on the report, AI21 Labs was not immediately available for response. If completed, the acquisition would mark another strategic move by Nvidia to deepen its capabilities in artificial intelligence research and talent, particularly in Israel’s fast-growing tech ecosystem.
AI21 Labs was last valued at $1.4 billion during a funding round in 2023, which included participation from Nvidia itself as well as Alphabet’s Google. Founded in 2017 by Amnon Shashua and two other co-founders, the company has been among a group of AI startups that have drawn strong investor interest amid the global surge in demand for generative and foundational AI technologies.
Shashua is also widely known as the founder and CEO of Mobileye, the autonomous driving technology company that was acquired by Intel and later listed publicly. His involvement has helped position AI21 as a high-profile player within Israel’s AI landscape.
According to Calcalist, AI21 has been exploring a sale for some time, with discussions with Nvidia accelerating in recent weeks. The report suggests that Nvidia’s primary motivation lies less in AI21’s products and more in its human capital. The startup employs around 200 people, many of whom hold advanced academic degrees and are considered to have rare and highly specialized expertise in artificial intelligence development.
The potential acquisition aligns with Nvidia’s broader expansion plans in Israel. The company, now valued at more than $4 trillion and considered the most valuable firm in history, has announced plans to build a major new research and development campus in Kiryat Tivon, south of Haifa. The planned facility could eventually house up to 10,000 employees.
Nvidia CEO Jensen Huang has previously referred to Israel as the company’s “second home,” underscoring the strategic importance of the country to Nvidia’s long-term growth. When completed, the new campus is expected to span up to 160,000 square meters of office space, alongside parks and shared areas across roughly 90 dunams. Construction is expected to begin in 2027, with initial occupancy targeted for 2031.
If finalized, the acquisition of AI21 Labs would further cement Nvidia’s presence in Israel while strengthening its access to top-tier AI research talent at a time when competition for expertise in the field remains intense worldwide.