NVIDIA wants to expand even more in the AI market, reportedly through AI servers

NVIDIA is reportedly in advanced negotiations to acquire Lepton AI, a company that rents out servers based on NVIDIA’s artificial intelligence (AI) hardware. Sources told The Information that the acquisition is reportedly worth several hundred million dollars.?

Lepton AI’s rapid rise

Founded in 2023, Lepton AI has quickly become a participant in the embryonic AI server leasing market. The company raised $11 million in seed funding from investors, including CRV and Fusion Fund. Lepton AI offers businesses high-performance AI computing capacity without the enormous capital expense typically needed to build in-house infrastructure.

NVIDIA’s acquisition of Lepton AI would be its foray into the AI server leasing industry, fitting into its larger plan to increase its presence in cloud computing for AI. By merging Lepton’s services, NVIDIA might offer affordable AI computing services to businesses, potentially making its hardware and services more widely adopted.

AI server leasing market is developing rapidly as businesses seek scalable and cost-efficient solutions to AI computing needs. Lepton AI solutions are poised to address this demand by enabling businesses to harness potent AI capabilities without a high upfront cost. NVIDIA’s potential takeover is a bid for strategic growth based on capitalizing on the market trend and establishing its position in the AI arena.