Nvidia Corp (NVDA) is in talks to buy Israel-based AI21 Labs in a deal worth up to $3 billion, according to a media report. So far, Nvidia has not commented, and AI21 Labs has not replied. In 2023, a funding round valued AI21 Labs at $1.4 billion. At that time, Nvidia and Alphabet (GOOGL) both took part in the round.
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AI21 Labs was founded in 2017 and focuses on AI language tools. In addition, the firm employs about 200 workers with deep AI skills. According to the report, Nvidia is mainly interested in this team and its know-how.
Meanwhile, NVDA shares dropped 0.36% on Tuesday, closing at $187.54.
Why the Deal May Matter for Investors
For Nvidia, the move fits its wider AI plan. The company already leads in AI chips used by data centers. Now, it is also adding more software and AI talent.
Meanwhile, Israel is growing in value for Nvidia. The company plans to build a large research campus near Haifa, with up to 10,000 staff. Construction is set to start in 2027, with use scheduled for 2031.
As a result, a deal for AI21 Labs would deepen Nvidia’s local role. It would also help Nvidia serve firms that want private AI tools. For investors, the key point is focus on long-term AI growth rather than near-term sales.
Is Nvidia Stock a Buy, Sell, or Hold?
On the Street, Nvidia holds a Strong Buy consensus rating. The average NVDA stock price target is $292.79, implying a 40.12% upside from the current price.
