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Nvidia, the US AI chip giant, is making a significant move by acquiring two Israeli startups for a total of $1 billion. The acquisitions of Run:ai and Deci AI, both leading AI companies in Israel, will add 250 employees to Nvidia's workforce. Run:ai specializes in managing graphics processors, enhancing AI model training efficiency for various industries. On the other hand, Deci AI focuses on compressing AI models to run more efficiently, founded by Google veterans. The potential of these companies to raise capital at billion-dollar valuations has sparked discussions about the 'brain drain' of Israel's AI talent.
The acquisitions by Nvidia will strengthen its position in the AI chip market and with major cloud service providers like Microsoft, Amazon, and Google. However, concerns arise about Israel's ability to produce large AI companies independently. A Stanford University study highlights negative immigration trends in Israel's AI sector, second only to India. Despite this, AI investors in Israel remain optimistic, citing the country's high number of AI experts. The government's AI national plan aims to promote research and human capital, but challenges persist in retaining top talent and fostering homegrown AI companies.
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Sam Altman today revealed that OpenAI will release an open weight artificial intelligence model in the coming months. "We are excited to release a powerful new open-weight language model with reasoning in the coming months," Altman wrote on X.
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