Learn more about Lepton AI now that they are being acquired by powerful tech giant Nvidia. This is the first time this has happened in the exploding AI server rental market. According to a report by The Information, the pact could be worth as much as $400 million. This detail is from deep inside unnamed sources. Lepton AI leases out use of those supercomputers powered by Nvidia’s AI semiconductors. In the two years since its founding, the company has attracted a lot of buzz.
The potential acquisition follows Nvidia's recent purchase of synthetic data startup Gretel, indicating the company's ongoing strategy to expand its footprint in the AI industry. Lepton AI has demonstrated its market potential by securing an $11 million seed round in May 2023, with investments from CRV and Fusion Fund. This funding support has gone a long way to strengthen Lepton AI’s market-leading position in an increasingly competitive environment.
Lepton AI’s servers run on Nvidia’s state of the art AI chips. They address the rapidly growing need for massive computing power, particularly in artificial intelligence applications. The company’s incredible growth and unique product have caught the attention of some of the biggest names in the technology industry. Lepton AI is advancing on the path to an eventual acquisition. At the same time, it goes tooth and nail with Together AI, the other giant in the server rental market.
Together AI, founded a year before Lepton AI, has gone on to raise more than $500 million in venture capital. This accomplishment even further underscores its financial wherewithal and robust financial arsenal. This competitive backdrop highlights the importance of strategic acquisitions for companies like Nvidia as they seek to enhance their capabilities and offerings in the burgeoning AI sector.
TechCrunch has reached out to Nvidia to confirm more information about the reported acquisition. As of this writing, they’re still waiting for a formal response. Earlier this week, The Information’s report showed Nvidia has similar enthusiasm for Lepton AI. This acquisition dovetails nicely with Nvidia’s plans to leverage industry-leading technology and cascade remarkable innovations throughout the quickly evolving landscape of artificial intelligence.