OctoAI joins Nvidia’s AI expansion

Nvidia has strengthened its AI strategy with the acquisition of OctoAI, marking its fifth deal this year. Founded in 2019, OctoAI specialises in developing software aimed at improving the performance of machine learning models. The startup’s focus has been on making AI hardware more accessible to developers, regardless of the technology provider.

Luis Ceze, CEO of OctoAI, has taken on the role of Vice President of AI systems software at Nvidia while maintaining his academic position at the University of Washington. Ceze praised Nvidia’s commitment to advancing AI, citing its leadership in the machine learning sector. OctoAI had already worked with Nvidia, AMD, and AWS prior to the acquisition, enhancing its machine learning infrastructure.

Concerns have been raised by regulators about Nvidia’s growing dominance in AI, particularly following its aggressive acquisition strategy this year. OctoAI’s investors believe the acquisition will maximise the startup’s impact in AI infrastructure, but critics worry that consolidation could limit competition in the rapidly growing AI industry.

OctoAI will shut down its commercial cloud service by the end of October, as part of its integration into Nvidia. Despite the transition, the startup has continued to attract attention, having raised $130 million in funding and achieved a $900 million valuation as of 2021.