Reka AI Valuation Surpasses $1 Billion with Nvidia and Snowflake Investment

Reka AI, a Sunnyvale startup, has closed a $110 million funding round with Nvidia and Snowflake backing them. This raises their valuation to over $1 billion. Snowflake had considered acquiring them last year but opted to remain partners instead. Reka AI's language models will soon be integrated into Snowflake's cloud offerings, positioning them to compete with big players in the AI landscape.

Reka AI, a Sunnyvale-based startup, has closed a $110 million funding round with Nvidia and Snowflake as lead investors. This significant investment has tripled the company's valuation to over $1 billion [1]. The funding round is a testament to the growing interest in AI startups and underscores Reka AI's potential in the enterprise AI market.

Reka AI was founded in 2022 by researchers from Alphabet's Google and Meta Platforms. The startup specializes in creating efficient large language models (LLMs) and has seen rapid growth, increasing its workforce from 20 to 50 employees in the past year [2]. The company's core technology features an advanced multimodal transformer architecture that can analyze various data types, including text, images, audio, and video, either individually or in combination [3].

Snowflake, a data warehousing company, had considered acquiring Reka AI last year but decided to remain partners instead. This strategic decision means that Reka AI's language models will soon be integrated into Snowflake's cloud offerings, positioning them to compete with big players in the AI landscape [4]. Vivek Raghunathan, vice president of AI engineering at Snowflake, highlighted Reka AI's unique capabilities, stating that "very few teams in the world have the capability to build what they’ve built" [2].

The funding round underscores the growing interest in AI startups, with other notable deals in the sector including Perplexity's $100 million funding round that valued the company at $18 billion [2]. This investment is not merely a vote of confidence in Reka's technology but a strategic bet on a future where AI infrastructure is no longer a fragmented puzzle of models and tools but a unified, governance-ready stack [5].

Reka AI's Reka Core and Reka Flash 3 models, developed by former DeepMind researchers, rival industry leaders like GPT-4 and Gemini Ultra while being more cost-effective [5]. The company's focus on efficiency and innovation positions it as a key player in the era of multimodal AI.

Looking forward, Reka plans to expand its AI foundation models into new sectors while supporting developers, businesses, and creators through accessible APIs and platforms for building next-generation AI applications [3]. The company's mission is to bridge the gap between advanced AI research and practical, secure deployment for real-world impact.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-22/snowflake-nvidia-back-new-unicorn-reka-ai-in-110-million-deal
[2] https://www.pymnts.com/news/artificial-intelligence/2025/this-week-in-ai-ai-startups-hit-fundraising-gold/
[3] https://techfundingnews.com/reka-110-million-funding-multimodal-ai-enterprise/
[4] https://www.tradingview.com/news/gurufocus:0af772ea6094b:0-nvidia-snowflake-fuel-reka-ai-s-leap/
[5] https://www.ainvest.com/news/reka-ai-110m-funding-strategic-inflection-point-enterprise-ai-ecosystems-2507/