Nvidia Negotiates Potential Acquisition of Reflection AI
October 13, 2026 · 2 min read
Also published in Português (Brasil), Norsk
Nvidia is conducting preliminary negotiations with the artificial intelligence startup Reflection AI regarding a potential acquisition or an expansion of its existing investment.
The discussions involve several possible structures for the deal. Nvidia may pursue a full acquisition, provide additional equity investment, or offer more computing power and chips. Another option being considered is an acqui hire, where Nvidia would hire core employees from Reflection AI and obtain licenses for its technology. This approach is intended to avoid the lengthy antitrust reviews associated with traditional corporate acquisitions.
Nvidia is already one of the largest shareholders of Reflection AI, having previously invested 800 million USD. Other investors in the startup include Sequoia Capital, Disruptive, and 1789 Capital.
Reflection AI was founded in 2024 by former Google Gemini developers. The company focuses on automated software development technology and open weight artificial intelligence models. In March, the company reached a valuation of 25 billion USD during a funding round. This week, Reflection AI released its first customizable open weight model for AI agents and programming, which runs on Nvidia chips. The company claims this model performs at a level comparable to GLM 5.2.
The United States government views the open weight models developed by Reflection AI as critical technical resources for competing against low cost rivals such as DeepSeek. Reflection AI has established partnerships with the Department of Energy and the Department of Defense. It has also agreed to develop models for United States allies, including South Korea.
Nvidia currently possesses the Nemotron series of open weight models but lacks its own frontier level foundation model. The company has recently expanded its footprint in the sector, including a 13 billion USD acquisition of the platform Hugging Face in September. Nvidia has also invested tens of billions of dollars into various startups, cloud computing firms such as Nebius, and laboratories like OpenAI.
Insiders suggest that an agreement between Nvidia and Reflection AI could be reached within the coming weeks, although the final terms of the transaction remain undecided.