Nvidia Recently Discussed Acquiring Software Startup OctoAI for $165 Million

Nvidia has been in advanced talks to buy OctoAI, a Seattle-based startup that sells software to make artificial intelligence models run more efficiently, according to a message sent to shareholders. The purchase would add to a string of small AI startup acquisitions by the AI chip heavyweight, which is trying to strengthen its software and cloud-computing services while U.S. antitrust officials probe its activities.

Nvidia has proposed paying about $165 million for the company, before accounting for the company’s debt and other expenses, according to a document OctoAI sent to shareholders.

The price suggests that shareholders—especially employees—won’t get much of a payout. The company raised $132 million from investors including Tiger Global Management, Madrona Venture Group and Amplify Partners, ultimately fetching a valuation of about $900 million in 2021.