Nvidia, the leading semiconductor giant, is reportedly in discussions to acquire Lepton AI, a startup specializing in renting servers powered by Nvidia’s advanced AI chips. According to sources cited by The Information, the deal is valued at several hundred million dollars and is expected to further expand Nvidia’s reach into the growing server rental market.
Founded two years ago, Lepton AI raised $11 million in seed funding from CRV and Fusion Fund in May 2023. The company provides powerful AI-powered server rentals, catering to the increasing demand for high-performance computing. Lepton’s primary competitor, Together AI, has raised over $500 million in venture capital and is also a key player in this rapidly evolving sector.
This acquisition aligns with Nvidia’s broader strategy to diversify its portfolio and strengthen its position in AI-driven markets. In addition to the Lepton deal, Nvidia recently acquired synthetic data startup Gretel, showcasing its commitment to bolstering its AI and machine learning capabilities.