March 27 - Nvidia (NVDA, Financial) is reportedly close to securing a deal to acquire Lepton AI, an artificial intelligence company specializing in server rentals powered by Nvidia's own chips, according to a Wednesday report by The Information.
The potential acquisition is valued at several hundred million dollars, the report said.
The move is expected to boost Nvidia's efforts to deepen its foothold in cloud infrastructure and enterprise software, putting it in closer competition with cloud giants such as Amazon (AMZN, Financial) and Alphabet's Google (GOOG, Financial).
The discussions follow Nvidia's recent acquisition of synthetic data startup Gretel, underscoring its push to strengthen its AI ecosystem.
Lepton AI, founded two years ago, competes with Together AI in the AI server rental market. The startup raised $11 million in a seed round last May, backed by venture firms CRV and Fusion Fund.
In comparison, rival Together AI has secured more than $500 million in funding, giving it a strong position in the growing market for AI infrastructure services.
