NVIDIA Eyes OctoAI Acquisition to Fortify AI Software Arsenal

Reports suggest that NVIDIA (NVDA.US) is in discussions to acquire the software startup OctoAI for approximately $165 million. Based in Seattle, OctoAI provides software enhancing the efficiency of AI models for its clients. The company's investors include Tiger Global Management, Madrona Venture Group, and Amplify Partners.

This potential acquisition aligns with NVIDIA's ongoing strategy to expand its influence in the AI domain. The company has been active in the M&A field this year, having already completed four transactions. In April, NVIDIA acquired Israeli data center management software company Run:Ai for $700 million, followed by a $300 million acquisition of deep learning platform developer Deci in May. June saw the purchase of Shoreline, a data center fault automation firm, reportedly valued at around $100 million. In July, NVIDIA acquired AI development tools startup Brev.dev, although the financial specifics of this deal remain undisclosed.

NVIDIA's consistent investment in AI-related companies highlights its commitment to strengthening its ecosystem and dominance in AI infrastructure. CEO Jensen Huang recently expressed the overwhelming demand for NVIDIA’s new AI GPU, Blackwell, underscoring NVIDIA's near-monopolistic stature in AI hardware.

The acquisition of OctoAI could further bolster NVIDIA's capabilities in AI software, potentially enhancing its product offerings and market reach. This move is anticipated to solidify NVIDIA's standing as a pivotal player in the AI industry, providing comprehensive solutions spanning both software and hardware aspects of AI technology.