Nvidia Enters Talks with Reflection AI Over Potential Acquisition or Investment

Nvidia Corp. is reportedly in early discussions to acquire open-weight model developer Reflection AI Inc., either through a direct purchase, acquihire, or increased investment. According to the Financial Times, an agreement could be reached within weeks, although there’s still a possibility that talks may collapse.

The potential deal comes as Nvidia continues its expansion into artificial intelligence and machine learning technologies. The company has already made significant investments in this area, including its recent acquisition of Hugging Face Inc. for $12.9 billion. In addition to acquiring companies outright, Nvidia has also pursued acquihires, where it licenses technology from startups while hiring their staff.

Reflection AI is a venture capital-backed startup that counts major investors such as Sequoia Capital Operations and DST Global LP among its backers. The company’s latest funding round closed at a $25 billion pre-money valuation, according to Chief Executive Misha Laskin. This valuation reflects the growing importance of open-weight models in the field of artificial intelligence.

Nvidia has already demonstrated its commitment to supporting startups like Reflection AI through significant investments. In October 2025, the company led a $2 billion funding round for the startup, and it’s reported that Nvidia has put around $800 million into Reflection AI overall. This investment underscores the potential for collaboration between established tech companies and innovative startups in the field of artificial intelligence.

The talks with Reflection AI are also significant given the recent launch of its first open-weight model, Beam. Developed using Nvidia GB300 systems rented from Space Exploration Technologies Corp., Beam is a mixture-of-experts model boasting 501 billion parameters. This achievement marks an important milestone for the company and highlights the potential applications of open-weight models in areas such as coding and agentic work.

Beam’s training was facilitated through a June agreement worth up to $6.3 billion with SpaceX, which provides Reflection AI with access to capacity at its Colossus 2 data center in Memphis until 2029. Payments of $150 million per month cover the costs associated with this arrangement. Additionally, Nebius Group N.V. agreed to sell Reflection another $1 billion in AI capacity in July.