Key Points:
- Nvidia is considering buying OctoAI for $165 million to enhance its AI and cloud services.
- OctoAI was valued at $900 million in 2021 and raised $132 million from investors like Tiger Global.
Nvidia Corp (NVDA) is looking to buy AI startup OctoAI for $165 million. This acquisition would help Nvidia strengthen its software and cloud computing services, particularly in artificial intelligence.
OctoAI focuses on software that makes AI models work more efficiently. It raised $132 million from investors, including Tiger Global, and was valued at $900 million in 2021.
Earlier this year, OctoAI teamed up with Nvidia to optimize AI models for businesses. They integrated Nvidia's NIM (inference microservices) into their platform to improve tasks like language and image generation. This integration helps developers use more efficient AI models on various cloud services.
Nvidia's stock has jumped 163% in the past year. Its GPUs are essential for tech giants like Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG, GOOGL) as they develop their AI technologies. Nvidia’s CEO, Jensen Huang, believes this AI boom will significantly boost the company's revenue.
Collaborations with big companies like Amazon and Oracle (ORCL) are expected to open up more cloud opportunities for Nvidia, according to analyst Justin Post from BofA Securities.
Price Action: Nvidia's stock is up 1.02% to $116.77 as of the last check on Wednesday.
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