Nvidia (NVDA) is reportedly in advanced negotiations to acquire AI startup OctoAI for approximately $165 million, aiming to enhance software capabilities and thus consolidate its leadership in the AI ​​market.

OctoAI focuses on providing software that improves the efficiency of AI model operations. OctoAI was founded five years ago by founders from the University of Washington's open source project Apache TVM. The company was originally called OctoML and is dedicated to helping developers deploy machine learning models.

Last year, OctoAI transformed into a service provider that allows developers to quickly adjust AI models and support multiple chip types to achieve efficient operation on different processors. The core technology of OctoAI is to convert AI models into code that can be processed by various processors, which helps accelerate the promotion of AI applications and reduce computing costs.

In fact, Nvidia and OctoAI established a partnership as early as the beginning of this year and have been working closely in the field of AI computing.

Nvidia once provided OctoAI with the latest chips to test the efficient operation of AI models. In addition, Nvidia's Inference Microservices software product also solves some technical issues that OctoAI is concerned about, further strengthening the basis for cooperation between the two parties.

However, OctoAI also maintains close cooperation with Nvidia's competitors such as AWS, AMD and Qualcomm, which may bring challenges to the acquisition.

Analysts believe that Nvidia may face scrutiny from the US Department of Justice after the acquisition, as the department is investigating Nvidia's other acquisitions, especially focusing on its monopoly risks in the AI ​​and chip markets.

In recent years, Nvidia has continuously acquired startups in the fields of AI and cloud computing to enhance the depth of its AI technology. Earlier this year, Nvidia acquired two small Israeli startups, Run and Deci, to make it easier and cheaper for developers to run AI models using Nvidia chips. This reflects Nvidia's desire to reduce chip costs through acquisitions and promote the application of its AI technology in more scenarios.

Although Nvidia's chips are expensive, market demand remains strong. Acquiring startups such as OctoAI will help Nvidia further simplify the AI ​​computing process and enhance its technological competitiveness.

Although Nvidia currently has a solid position in the market, this acquisition may raise antitrust concerns due to its partnership with a large competitor.