Nvidia (NVDA) Is In Advanced Talks To Acquire Reflection AI

Nvidia's (NVDA) AI-chip market share in China fell to 34% in H1 2026, down from 678,000 units sold, a 44% YOY decline. Huawei gained, shipping 572,000 units, capturing 28% of the market. U.S. export restrictions and China's push for local alternatives contributed to the shift, according to IDC data.

Amazon is reportedly in talks to acquire AI startup Decart for $7 billion. Decart, with around 100 employees and no disclosed revenue, specializes in AI optimization software and generative video. Amazon values Decart for its potential to shift AI developers from Nvidia's software to its own Trainium chips. Both companies declined to comment, and the deal is not yet finalized. Amazon's shares closed at $259.53 on October 12, 2026, reflecting a -1.11% decrease.

NVIDIA (NVDA) has begun production of its Vera Rubin platform, aiming to extend its AI market lead. The platform promises 10x the throughput of its predecessor and is expected to contribute 20% of Data Center revenues in Q3. NVIDIA reported Q2 FY2027 revenues of $96.2B, up 106% YoY, with Data Center revenues at $89B, up 117%. Rivals AMD and Intel are also advancing their AI chip platforms, but NVIDIA's integrated systems remain a key advantage.

Nvidia's market share in China for AI accelerators dropped to 34% in the first half of 2026, a 44% decline from the previous year, according to IDC. Huawei gained market share, supplying 572,000 accelerators. U.S. export restrictions are cited as a key factor in this shift, with China promoting domestic alternatives.

Goldman Sachs and JPMorgan arranged a $5B loan for Volta Infrastructure, underwriting only $1.3B. The remaining $3.7B is on a best-efforts basis, with yields of 11.21%-11.75%. The funds will buy Nvidia GPUs for a Norway data center, with Bitdeer operating and Anthropic as a tenant. Volta's investors include a16z, Altimeter, Michael Dell, and Nvidia.

Goldman Sachs (GS) and UnitedHealth Group (UNH) reported strong earnings, boosting their stock prices. The S&P 500 slipped 0.1%, while the Dow Jones rose 0.6%. Chip stocks fell sharply, with Micron (MU) down 5.8%, Nvidia (NVDA) down 1.3%, and AMD (AMD) down 3.3%. Wells Fargo (WFC) reported weaker revenue, while JPMorgan (JPM) rose despite weaker earnings but beat net interest income forecasts.