TNB Tech Minute: Nvidia-Backed AI Startup Seeks $25 Billion Valuation

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Here's your morning TNB Tech Minute for Thursday, March 26th. I'm Danny Lewis for The Wall Street Journal. We exclusively report that an NVIDIA-backed startup seeking to build a U.S.

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network of open-source artificial intelligence models is in talks to raise $2.5 billion at a valuation of $25 billion. According to people familiar with the matter, Reflection, which is seeking to counter China's AI offerings, is in funding discussions with JPMorgan Chase, among other companies.

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Reflection has also developed close ties with Nvidia, which invested about $800 million in a previous funding round, though the young startup has yet to generate meaningful revenue. A Reflection spokesperson declined to comment.

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The startup recently raised $94 million from investors, including OpenAI, which backed the company at a $650 million valuation.

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OpenAI has recently moved to deprioritize certain products in favor of focusing on business services, including software engineering tools. News Corp., owner of The Wall Street Journal, has a content licensing partnership with OpenAI. And memory chip makers slumped after Google unveiled technology this week that could reduce the amount of memory needed in AI models.

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Google researchers say the new compression algorithm, called TurboQuant, can shrink the amount of short-term memory an AI model uses by at least six times, quote, "...all with zero accuracy loss." Shares in Micron Technology, the largest American maker of memory chips, is down roughly 4.5% this morning.