Nvidia is reportedly in advanced talks to acquire Lepton AI, a company that rents out servers powered by Nvidia’s own AI chips, in a deal valued at several hundred million dollars according to unnamed sources. This move marks a strategic step for Nvidia as it seeks to expand into the server rental market, an increasingly competitive space with rising demand for specialized AI-driven infrastructure.
Founded just two years ago, Lepton AI secured an $11 million seed round in May 2023 from investors such as CRV and Fusion Fund, which highlights its potential in the tech industry. The server rental field is already seeing strong competition from startups like Together AI, which, despite being only slightly older than Lepton AI, has managed to raise over $500 million in venture capital. In a related development, Nvidia recently acquired Gretel, a synthetic data startup, further cementing its commitment to diversifying its portfolio and strengthening its position in the broader AI ecosystem.
While TechCrunch reached out for additional comments, Nvidia has not yet provided further details about the potential deal. This series of strategic moves underscores Nvidia’s ambition to go beyond traditional semiconductor manufacturing and delve into new markets that leverage its advanced AI technologies and infrastructure expertise. Industry observers are closely watching these developments, anticipating that Nvidia’s continued investments and acquisitions will significantly influence the competitive landscape of both the server rental and AI sectors.
