By Sophie Shulman, Meir Orbach
Publication Date: 2025-12-30 05:12:00
Chip giant Nvidia is in advanced talks to acquire AI21 Labs, one of the few Israeli startups developing a large-scale language model for artificial intelligence, Calcalist has learned. According to estimates, the deal could be valued at $2-3 billion, up from AI21’s last known valuation of $1.4 billion, set during a fundraising round completed in 2023.
AI21 completed a $300 million fundraising round earlier this year led by Nvidia and Google. The company never officially confirmed the round, however, and its valuation was not disclosed. Estimates at the time suggested that the valuation had not risen significantly compared with the 2023 round.
AI21 has long been considered “on the shelf,” with Google also previously exploring a potential acquisition. In recent weeks, however, talks with Nvidia have advanced significantly and have reached the most senior levels. Nvidia’s primary interest in AI21 appears to be its workforce of roughly 200 employees, most of whom hold advanced academic degrees and possess rare expertise in artificial intelligence development.
Such a transaction would effectively provide Nvidia with a fast-track expansion of its AI talent base in Israel, at an implied cost of roughly $10-15 million per employee. While this reflects strong international demand for Israeli AI talent, it also underscores a retreat from AI21’s original ambition to compete directly with leading AI…