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NVIDIA is in talks to deepen its investment in open-source artificial intelligence startup Reflection AI or acquire the company, the Financial Times reported on Saturday, citing people with direct knowledge of the matter.
The discussions come as AI-powered coding tools and autonomous software development gain traction, drawing interest from major technology companies looking to strengthen their positions in the rapidly evolving AI market.
The talks are at an early stage and could lead to different arrangements, including a full acquisition or a further financial investment, according to the Financial Times report.
Another option under consideration is a so-called acqui-hire arrangement, under which NVIDIA could hire Reflection AI's employees and license its technology instead of buying the company outright. Such a structure could potentially help avoid the lengthy regulatory review associated with a traditional acquisition.
An agreement could be reached in the coming weeks, the newspaper reported, citing multiple people familiar with the discussions. However, the report also cautioned that the talks could still fall apart.
Reuters could not immediately verify the report. NVIDIA and Reflection AI did not immediately respond to requests for comment outside regular business hours.
NVIDIA is already a major financial backer and strategic investor in Reflection AI, having invested USD 800 million in the startup.
Founded in 2024 by former DeepMind researchers Misha Laskin and Ioannis Antonoglou, Reflection AI develops tools designed to automate software development, an increasingly prominent application of artificial intelligence.
The startup is working to establish itself in a competitive market where AI systems are being developed to assist with coding and carry out complex tasks with greater autonomy.
Reflection AI Chief Executive Misha Laskin told CNBC in April that the NVIDIA-backed company was raising fresh capital at a pre-money valuation of USD 25 billion.
Also Read: NVIDIA-Backed Reflection AI Seeks USD 2.5 Billion at USD 25 Billion Valuation
Reflection AI launched its first open-weight artificial intelligence model, Beam, on Monday as it seeks to compete in coding and agentic tasks with lower-cost Chinese models such as DeepSeek and Kimi.
The company's focus on software development automation comes as technology firms race to build AI systems capable of handling increasingly complex programming tasks.
Any deeper partnership or acquisition by NVIDIA could strengthen its involvement in this segment of the AI industry. However, the reported discussions remain preliminary, and neither company has confirmed an agreement.
