NVIDIA Corporation NVDA The company is considering acquiring startup OctoAI for $165 million to bolster its software and cloud computing services.
The startup sells software designed to make artificial intelligence models more efficient, according to The Information, which cited a shareholder message.
OctoAI has raised $132 million from investors including Tiger Global, which valued the company at $900 million in 2021.
Related article: BlackRock, Microsoft and others partner on $30 billion artificial intelligence fund to help promote “AI innovation and economic growth” in the U.S.
In March, OctoAI partnered with Nvidia to begin deploying generative AI models optimized for the enterprise.
OctoAI has integrated NVIDIA NIM, an inference microservice to accelerate deployment of foundational models across any cloud or data center, into its generative AI platform to address customer use cases including language and image generation, and also allows developers to experiment with inference-optimized models.
Nvidia has risen 163% over the past 12 months, and the company’s graphics processing units (GPUs) remain essential to major tech companies like Microsoft Corp. MSFTAmazon.com Inc. AmazonGoogle’s parent company Alphabet Inc. Google Google I dream of achieving my AI ambitions.
Nvidia CEO Jensen Huang has expressed confidence in the AI boom, predicting that hyperscale customers will generate $5 in rental revenue for every $1 they spend on Nvidia’s infrastructure.
Nvidia’s key hyperscale partnerships include Amazon and Oracle Corp. OrksBofA Securities analyst Justin Post believes this will create a big opportunity for the cloud.
Price Action: NVDA shares were up 1.02% at $116.77 as of last check on Wednesday.
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