According to the Financial Times, citing people familiar with the matter in a report published on October 10, Nvidia is in early-stage talks to deepen its investment in Reflection AI, a U.S. open-weights AI startup, or to acquire the company outright. Reuters, citing the FT report, writes that the parties could reach a deal in the coming weeks, though the talks have not reached a final stage and could collapse at any moment. The initial report appeared in the Financial Times on October 10; that same day Reuters relayed the story to its readers, while Bloomberg confirmed the report and added further details.
Possible Form of the Deal
The deal under discussion could take several forms. One option on the table is an acqui-hire arrangement: Nvidia would hire Reflection AI's employees and gain the right to use the company's technology under license, forgoing a full acquisition. According to the FT, such a structure would allow it to sidestep regulatory scrutiny that could drag on for a long time.
Unlike a full acquisition, an acqui-hire preserves the company's legal independence: Nvidia takes on the staff and uses the technology under license without buying the company outright. According to the FT, it is precisely this feature that makes the option a way to bypass potentially lengthy regulatory review.
Nvidia is already one of the startup's largest financial backers — the company has invested $800 million in Reflection AI. The FT report therefore says the talks are proceeding on two tracks: further expanding the existing investment or a full acquisition.
"Nvidia has already put $800 million into Reflection AI and is one of the company's largest financial backers." — Reuters
It is stressed, however, that the talks are still at an early stage. Although the parties could reach an agreement in the coming weeks, no final decision has been made, and the possibility of the talks collapsing remains open.
It is not yet known when the talks will conclude. According to sources, an agreement could be reached in the coming weeks, but that timeline is not guaranteed — the parties may also fail to reach a deal.
Reflection AI: Company Profile
Reflection AI was founded in 2024. Its founders are former Google DeepMind researchers Misha Laskin and Ioannis Antonoglou. The company specializes in building tools that automate software development processes.
In the relatively short time since its founding in 2024, the company has reached a lofty valuation: in a March funding round it was valued at $25 billion. The figure was cited by Bloomberg when confirming the FT report and reflects the startup's standing in investors' eyes.
Bloomberg confirmed the FT report: Reflection AI was valued at $25 billion in its March funding round. According to Bloomberg, the exact terms of the deal under discussion have not yet been determined.
The Beam Model and the Competitive Landscape
On October 5, five days before the FT report was published, the company unveiled its first open-weights model, Beam. The model is designed for coding and agentic tasks and aims to compete with cheaper Chinese models — DeepSeek and Kimi.
The fact that the model targets coding and agentic tasks is closely tied to Reflection AI's core focus — automating software development. According to Reuters, by choosing the open-weights approach, the company competes directly both with closed commercial models and with cheaper Chinese alternatives.
According to Reuters, Beam's release comes at a time of intensifying competition in the open-weights segment. It is the activity in this direction that is said to be strengthening Nvidia's interest in the startup. Bloomberg, in confirming the FT report, added that the deal's details have not been disclosed (Bloomberg Law).
How the Story Spread
The initial report was published in the Financial Times on October 10, citing people familiar with the matter. The same day, Reuters relayed the FT story to its readers and wrote in detail about the deal's possible forms. Bloomberg confirmed the report, recalling the company's $25 billion March valuation but stressing that the terms under discussion have not been determined.
What Remains Unknown
The exact terms of the deal under discussion have not been disclosed. It is also unknown which option Nvidia will ultimately choose — expanding its investment, an acqui-hire, or a full acquisition. According to FT sources, the talks are ongoing and their outcome cannot be predicted.
Whether the parties will reach an agreement in the coming weeks or the talks will collapse — no one can say for now. The FT's well-placed sources confirm the process is ongoing, but with no final decision made, the news is being reported in a cautious tone.
