Nvidia weighs acquisition or further investment in Reflection AI

IREN Ltd. (IREN) stock surged after Anthropic reportedly signed a multi-year cloud contract, adding to its growing customer base. Anthropic aims to expand AI computing capacity significantly, with IREN benefiting from faster data-center deployment. Analysts upgraded IREN, citing rising AI demand and higher contract pricing, with price targets up to $80. IREN shares rose 4.46% premarket.

Nvidia (NVDA) is in early talks to invest more or acquire Reflection AI, according to the Financial Times. Nvidia has already invested $800 million in the startup, which focuses on automating software development. Nvidia's stock has risen 21% in the last 6 months, with a price target of $329. The company reported $96 billion in revenue for the latest quarter and expects 70% revenue growth in fiscal 2028.

Nvidia is in early talks to acquire or further invest in Reflection AI, a startup developing open-weight AI models. Nvidia already holds a significant stake in Reflection, having invested $800 million. Potential deal structures include an acqui-hire, chip supply agreements, or increasing equity stake. Reflection's Beam model competes in coding tasks and is valued at $25 billion. Nvidia has recently made large transactions in the AI sector, including a $13 billion deal for Hugging Face.

Nvidia is reportedly in early talks to acquire or increase its stake in Reflection AI, an open-source AI startup. Nvidia is already a major investor, having put in $800m. Reflection AI was last valued at $25bn. Potential outcomes include full acquisition, additional investment, or an acqui-hire. No final agreement has been reached. Reflection AI develops open-weight models and partners with US agencies and countries like South Korea. Nvidia previously acquired Hugging Face for $13bn.

Nvidia is reportedly in early-stage talks to acquire or further invest in Reflection AI, according to the Financial Times. Options include an acqui-hire, supplying more chips, or increasing its stake. Nvidia has already invested $800m in the startup. Reflection, founded by ex-Google DeepMind researchers, released its first model, Beam, in October. The Trump administration hopes Reflection will compete with Chinese open models.

SpaceX is reportedly seeking $40 billion to buy AI chips from Nvidia, including $10 billion in bank loans and $30 billion in investment-grade debt. The company is in talks with banks and asset managers like PIMCO, with Apollo expected to lead the financing. The deal underscores the high costs of AI infrastructure, with Morgan Stanley estimating $1.5 trillion in financing needed by 2028. SpaceX shares fell 2% and Nvidia shares rose 0.5% on the news.