Nebius, an AI cloud provider spun out of Russian tech giant Yandex, is in talks to acquire Israeli startup AI21 Labs. Sources value the proposed deal at more than $500 million. AI21 Labs develops large language models and competes directly with OpenAI.
Negotiations began after a potential acquisition of AI21 Labs by Nvidia failed. The current price reflects a significant drop from the startup's $1.4 billion valuation. Investors including Google and Nvidia established that previous valuation in August 2023.