NVIDIA-backed Reflection AI is in talks to raise $2.5 billion at a proposed $25 billion valuation, according to a Wall Street Journal report. The report said the proposed figure reflects the company’s pre-money valuation, which means it does not include the new funding under discussion.
The talks place Reflection among the AI startups seeking large pools of capital, as demand for advanced models and computing capacity remains strong. The company has drawn attention for its work on freely available US AI systems and for its close ties with NVIDIA.
Reflection AI is discussing a funding round that could bring in $2.5 billion. If the round closes at the reported terms, the startup would carry a proposed $25 billion valuation before the new capital is added.
That figure marks a step up from the more than $20 billion level the company had reportedly targeted earlier this month. The change shows that the terms under discussion have moved higher as fundraising talks continue.
The proposed valuation remains part of ongoing talks and has not been finalized. However, the size of the reported round shows how much capital investors are willing to commit to AI companies with strong technical backing and access to computing infrastructure.
Large AI funding rounds have become more common as startups race to build models, secure chips, and expand teams. Reflection’s reported raise fits that pattern and places the company among the best-funded private firms in the sector if the deal goes through.
The report said JPMorgan Chase is considering joining the investment through its Security and Resiliency Initiative. The bank launched that initiative in December to support US companies operating in sectors tied to the economy and national security.
If JPMorgan joins the round, the deal would bring in a major financial institution alongside existing technology-focused investors. That possible participation also shows that AI funding is drawing interest from a broader range of backers.
The report also said Disruptive, an earlier investor in Reflection, is expected to invest again. No final agreement has been announced, and the list of investors could still change before the fundraising process ends.
Even so, interest from firms outside the traditional venture capital space points to the growing scale of AI investment. Banks and private investors are paying closer attention to companies building core systems, models, and related infrastructure.
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Reflection has built close ties with NVIDIA, which has supported a group of startups working on freely available “open-source” AI models. These systems can be used and adapted by businesses, research labs, and universities for their own needs.
The report said NVIDIA invested about $800 million in a previous Reflection funding round that valued the startup at $8 billion. That earlier figure gives a clear view of how fast the company’s reported valuation has risen.
Reflection is also part of a broader effort to build US-based AI systems that can compete with rising offerings from China. That goal has added to investor interest as AI development becomes more closely tied to computing supply and national strategy.
At the same time, the company remains young and has yet to generate meaningful revenue, according to the report. Even so, its NVIDIA backing, technical focus, and place in the AI race continue to keep the startup in focus as the fundraising talks move forward.