NVIDIA invested again, this AI large model company aims to create "DeepSeek" in the United States

NVIDIA heavily invests $800 million to lead the funding of American AI startup Reflection AI, helping it build the American "DeepSeek" in the open-source large model track.

On October 9th, according to media reports, American AI startup Reflection AI announced the completion of $2 billion in financing, with NVIDIA leading the investment of $800 million, bringing the company's valuation to $8 billion. This company, established only a year ago, is betting on open-source AI models, attempting to create an American version of "DeepSeek."

Misha Laskin, co-founder and CEO of Reflection AI, stated that there is a "DeepSeek-shaped gap" in the U.S., and existing Western open-source AI models are losing to competitors like DeepSeek. The company believes that the U.S. needs an open-source model developer that can compete with top proprietary models to maintain its global technological advantage.

This round of financing comes just seven months after the company's $130 million Series A funding in March, with its valuation soaring from approximately $545 million at that time to $8 billion. Investors in this round also include Lightspeed Venture Partners, Sequoia Capital, DST, former Google CEO Eric Schmidt, and 1789 Capital, where Donald Trump’s eldest son serves as a partner.

This financing highlights investors' continued enthusiasm for the AI sector. According to PitchBook data, AI foundational model companies have raised $71.9 billion globally so far this year, far exceeding last year's $34.9 billion.

NVIDIA's Heavy Bet on Open-Source AI Track

NVIDIA plays a key role in this round of financing, not only investing $800 million to become the largest investor but also sending engineers to collaborate with Reflection AI to optimize its latest generation of AI chips. According to insiders, the two parties have established a deep cooperative relationship on a technical level.

This investment strategy shows that NVIDIA is betting on both proprietary and open-source AI models simultaneously. Last month, NVIDIA just committed up to $100 billion in investment to OpenAI. By diversifying its investments, NVIDIA ensures it can maintain a leading position even as AI technology routes diverge.

NVIDIA's involvement also provides Reflection AI with a technological advantage. As an absolute leader in the AI chip field, NVIDIA's engineering support helps Reflection AI gain a competitive edge in computing efficiency and model performance.

Open-Source Models Challenge Proprietary Dominance

The rise of Reflection AI reflects the technological route struggle currently experienced in the AI industry. For a long time, companies like OpenAI and Google have dominated the AI industry with proprietary closed-source software, but high-performance free open-source models launched by companies like DeepSeek are changing the competitive landscape.

Laskin compares the current situation to the space race during the Cold War, emphasizing that the U.S. needs to establish a competitive advantage in the open-source AI field.

Although critics of open-source AI worry that this approach may pose significant risks, Reflection AI believes that the demand from large companies and governments will ultimately create a sustainable business model The development of AI models requires increasingly more computing power and R&D talent, which means higher funding demands. Laskin admitted that Reflection AI needs more funding to remain competitive, especially in the context of competitors also raising funds aggressively.

It is reported that Reflection AI has been negotiating with potential investors in recent months and completed the financing within weeks. The rapid pace of financing reflects investors' strong interest and urgency in the field.

Laskin expressed optimism about the company's prospects, hoping that smaller AI companies could eventually become the future Amazon and Meta. "I anticipate that we could become a company larger than today's hyperscale cloud service providers," he said