Nvidia, the semiconductor powerhouse, is reportedly making strides toward entering the server rental market. Sources indicate the company is close to finalizing a deal to acquire Lepton AI, a firm specializing in renting servers equipped with Nvidia’s AI chips. This potential acquisition, reportedly valued at several hundred million dollars, underscores Nvidia’s expanding ambitions in the artificial intelligence infrastructure space.
Nvidia Reportedly Pursuing Lepton AI Acquisition
The technology giant, Nvidia, is allegedly on the verge of acquiring Lepton AI, according to sources familiar with the matter. Lepton AI is known for providing server rental services, utilizing Nvidia’s advanced artificial intelligence processors. The proposed transaction is estimated to be in the range of hundreds of millions of dollars.
When contacted for comment, Nvidia did not immediately respond to requests for further details.
Lepton AI: A Rising Player in Server Rental
Established just two years ago, Lepton AI quickly attracted investor interest, securing an $11 million seed funding round in May of the previous year. The funding was led by CRV and Fusion Fund. Lepton AI operates in a competitive server rental landscape, with key players like Together AI also vying for market share.
Server Rental Market Context
Together AI, a competitor in the server rental arena, has garnered significant venture capital, amassing over $500 million in funding. Despite being only slightly older than Lepton AI, Together AI represents a substantial presence in this rapidly evolving sector. The potential acquisition of Lepton AI by Nvidia signals increasing consolidation and competition within the server rental market, particularly for AI-driven applications.
Recent Nvidia Acquisition Activity
This potential acquisition follows Nvidia’s reported purchase of Gretel, a synthetic data startup, in the prior week. These moves suggest a broader strategy by Nvidia to expand its footprint beyond chip manufacturing and into related software and service markets within the artificial intelligence ecosystem.