Nvidia may acquire Lepton AI in a high-stakes move to expand its cloud presence and control more of the AI stack.
Nvidia might be making another big move—this time in the cloud infrastructure space. According to multiple reports, the chipmaking giant is in talks to acquire Lepton AI, a startup that rents out servers powered by Nvidia's own AI chips.
The deal, if finalized, could be worth several hundred million dollars. It’s a signal that Nvidia isn’t just happy selling the picks and shovels of the AI gold rush—it’s looking to own more of the mine.
Founded just two years ago, Lepton AI focuses on AI-managed cloud services, helping companies build and deploy AI models without the headache of managing infrastructure. It raised $11 million in seed funding in 2023 from backers including CRV and Fusion Fund.
Its co-founders, Yangqing Jia and Junjie Bai, are no strangers to AI—they both previously worked at Meta as AI researchers. With Lepton, they’ve aimed to make AI computing more accessible to startups and researchers by letting them rent powerful GPU resources on demand.
Strategic Fit—or Red Flag?
For Nvidia, the deal could help it further expand its footprint beyond hardware and deeper into the cloud ecosystem, putting it in more direct competition with the likes of AWS, Microsoft Azure, and Google Cloud.
But not everyone’s sold on the idea. Noted short seller Jim Chanos voiced skepticism, saying, "Trying to buy out your resellers is usually a huge red flag." His concern? That Nvidia might be stepping on the toes of its existing partners or feeling pressure to shore up distribution.
Behind All the Ruckus, Nvidia Stays Silent
Nvidia hasn’t officially confirmed the talks. But if the acquisition goes through, it’ll mark another bold step in Nvidia’s ongoing evolution—from chip supplier to full-blown AI infrastructure powerhouse.
Either way, this move shows just how serious Nvidia is about owning more of the AI value chain.
