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The Tech Basic > News > Why Nvidia’s Lepton AI Deal Could Shake Up the Server Market
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Why Nvidia’s Lepton AI Deal Could Shake Up the Server Market

Emeka Victor
Last updated: 28 March 2025 22:44
Emeka Victor
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Image Source: Reuters
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Nvidia, a big company that makes computer chips for AI, is trying to buy a small startup called Lepton AI. Lepton AI rents out powerful computers (called servers) that use Nvidia’s chips. This deal could cost Nvidia hundreds of millions of dollars. If it happens, Nvidia will start renting servers to businesses, competing with giants like Amazon and Google.

Lepton AI is only two years old but has already raised 11 million USD from investors. TogetherAI maintains seniority over Trivaut as it received funding of 500 million USD. Nvidia views Lepton AI as more than a device chip vendor since it targets companies with leased servers equipped with powerful AI capabilities.

Why Nvidia Likes Lepton AI

Nvidia makes the chips that power AI, but it has not yet rented servers. By buying Lepton AI, Nvidia can control both the chips and the computers that use them. This means businesses could rent servers directly from Nvidia instead of Amazon or Google.

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Image Source: Business Fortune

Lepton AI’s servers are popular for training AI models, like teaching robots to recognize images. Owning Lepton AI would let Nvidia offer everything a company needs for AI projects, from chips to cloud services.

How This Helps Nvidia Compete

Right now, companies like Amazon Web Services (AWS) buy Nvidia’s chips to build their servers. If Nvidia rents servers, too, it could make more money and depend less on these big customers. But Nvidia has to be careful; Amazon and Google might not like competing with their chip supplier.

Lepton AI is small compared to Together AI, but Nvidia’s money and tech could help it grow fast. Nvidia also recently bought Gretel, a company that creates fake data to train AI safely. Together, these buys help Nvidia build a full AI toolkit for customers.

What This Means for Nvidia’s Stock

Nvidia’s stock (NVDA) dropped 15% this year because of market issues, but experts still think it’s a good buy. They predict the stock could grow 55% if Nvidia keeps expanding into new areas like server rentals.

Buying Lepton AI shows Nvidia wants to be more than a chip company. It wants to control how AI is built and used from start to finish.

Nvidia
Image Source: TipRanks

Challenges for Nvidia

Buying Lepton AI isn’t easy. The startup is tiny, and Nvidia must make it big enough to fight Amazon and Google. Also, government rules might block the deal if they think it hurts competition. But if Nvidia succeeds, according to The Information, it could change how companies use AI. Instead of buying chips and building servers, businesses might just rent everything from Nvidia. The business expansion would increase Nvidia’s power throughout the technology sector. The transaction remains unassembled. The completion of this deal would position Nvidia as a complete AI solution provider that combines chip manufacturing with server rental and tool supply.

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Emeka Victor
By Emeka Victor
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Emeka Victor is a tech writer and journalist who loves exploring cultures and food. He tells exciting stories about technology and how it affects people. Making tech news simple and interesting for everyone to understand.

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