Nvidia Reportedly in Talks to Acquire Lepton AI for Server Rental Expansion

Nvidia, the leading semiconductor giant, is reportedly planning to enter the server rental market through the acquisition of Lepton AI. According to The Information, the deal is estimated to be worth several hundred million dollars. Lepton AI specializes in renting out servers equipped with Nvidia’s advanced AI chips.

Founded two years ago, Lepton AI secured an $11 million seed funding round in May 2023, backed by investors like CRV and Fusion Fund. Despite its relatively recent entry into the market, the company has quickly positioned itself as a key player in the AI server rental space. The acquisition would mark a significant move for Nvidia, further extending its influence in AI infrastructure.

Lepton AI's competitor, Together AI, has also been gaining momentum. Having raised over $500 million in venture capital, Together AI remains a strong presence in the sector despite being just a year older than Lepton.

This news follows Nvidia’s reported acquisition of synthetic data startup Gretel last week, highlighting the company's ongoing efforts to bolster its AI capabilities and diversify its business model. Nvidia’s expansion into server rentals could provide more accessible AI computing power to companies and developers, further cementing its dominance in the AI ecosystem.

TechCrunch has reached out to Nvidia for additional comments on the potential acquisition. Further developments are anticipated as the deal progresses.