NVIDIA could soon strengthen its position in the AI market even more

As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you.

A new report has claimed NVIDIA is eyeing a potential acquisition of Lepton AI, a company that rents out servers that are powered by NVIDIA's AI hardware.

2

The report comes from The Information, which writes the green semiconductor giant is currently engaging in talks to move into the server rental market with the acquisition of Lepton AI in a deal worth several hundred million dollars. If true and the deal was inked, it would give NVIDIA a stronger foothold in the cloud-based AI computing market and the greater artificial intelligence sector.

As for the AI server rental market, reports indicate that it's an extremely fast-growing sector. Lepton AI was founded two years ago but secured an $11 million seed funding round from investors CRV and Fusion Fund. Lepton AI has positioned itself well in the emerging market as companies are looking for cost-effective ways of accessing high-performance AI computing hardware without having to fork out hundreds of thousands or potentially millions of dollars in AI server infrastructure, hence it attracting attention from NVIDIA for a potential acquisition.

NVIDIA getting into the AI server rental market makes sense considering its hardware is renowned as the best-in-class for AI workloads, which are only becoming more performance demanding. NVIDIA being able to provide a cost-effective option to companies to begin working with AI servers makes sense, and will likely result in those companies testing the waters purchasing more hardware from the semiconductor company -- if their experience on the rented AI servers proves fruitful.