By Rich Duprey
Publication Date: 2026-04-10 16:10:00
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Nebius Group (NBIS) is in talks to acquire AI21 Labs, a $1.4 billion-valued Israeli AI startup with $50M annual revenue and a 200-person research team, to expand beyond GPU rental into higher-margin software services. Nebius posted 500% YoY quarterly growth with $529.8M trailing 12-month revenue and $3.68B cash on hand, positioning it to fund both the AI21 acquisition and its $16-20B data center capex plan.
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Model-development costs climbing into the billions are driving consolidation among AI infrastructure players, with Nebius seeking to build a full-stack platform after Nvidia walked away from AI21.
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AI infrastructure deals keep accelerating as model-development costs climb into the billions and only a handful of players can foot the bill. Last year Nvidia (NASDAQ:NVDA) walked away from advanced talks to buy Israeli startup AI21 Labs at a $2 billion to $3 billion valuation. Now another buyer has stepped in.
Reports say Nebius Group (NASDAQ:NBIS) is in discussions to acquire the company, and the news sent its stock soaring. Investors who own the stock or watch the AI-cloud space want one clear answer: does this move turn Nebius into a full-stack contender, or is it just another high-priced gamble in a sector already priced for perfection?
The Information reported Wednesday that Nebius entered talks to buy AI21 Labs, months after Nvidia’s negotiations…
