NVIDIA in Advanced Talks for a Potential $25B Acquisition of Reflection AI
In a significant development in the AI industry, NVIDIA is reportedly in preliminary discussions to either acquire or substantially increase its investment in Reflection AI. This U.S.-based open-weight AI startup has been making waves in the tech world. The negotiations, initially disclosed by the Financial Times on October 10, 2026, could take various forms. These range from a complete acquisition to an “acqui-hire” arrangement. In the latter, NVIDIA would employ staff and license the technology, a strategy designed to bypass protracted antitrust regulatory scrutiny.
Currently, NVIDIA has an investment of around $800 million in Reflection AI. The startup was valued at an impressive $25 billion during a funding round earlier this year. Reflection AI, founded by ex-Google DeepMind researchers, recently introduced its first open-weight model, Beam. This model targets enterprise clients and developers who want competitive performance at a reduced cost. Other prominent investors include Sequoia Capital, DST Global, and Lightspeed Venture.
This potential deal highlights NVIDIA’s strategic intent to grow beyond chip hardware. The tech giant aims to dominate the wider AI software and model ecosystem, especially as open-weight competitors like China’s DeepSeek gain international popularity. As per Reuters, an agreement could be finalized within weeks, although the talks could still collapse.
Source: Reuters via KFGO — Nvidia in talks to invest further in Reflection AI or buy it, FT reports