Nebius in Talks to Buy Israeli AI Startup AI21 After Nvidia Deal Fizzles

Nebius, a cloud provider backed by Nvidia with a market cap of $32 billion, is in talks to buy Israeli-based AI startup AI21 Labs, according to people with knowledge of the deal.

The potential deal would help Amsterdam-based Nebius expand AI services for its customers beyond its main business of renting out servers.

AI21 develops large language models and systems for enterprise agents.

The Israeli-based startup, last valued at $1.4 billion in 2023, had discussed a sale to Nvidia last year, but the deal didn’t pan out, according to some of the people.