Nvidia, Snowflake Invest $110M In Newly-Minted Unicorn Reka AI

Nvidia Corp. (NVDA) and Snowflake Inc. (SNOW) have teamed up to lead a new funding round in three-year-old artificial intelligence startup Reka AI, making it one of the latest unicorns in the industry.

Post the latest fundraising round, Reka AI’s valuation has more than tripled to over $1 billion, according to a Bloomberg report.

Reka AI develops large language models and promises to do so more efficiently than its competitors in the space.

Nvidia’s shares were down 0.6% during Tuesday’s pre-market trade, while Snowflake’s shares fell 0.3%.

Stocktwits data shows the retail sentiment around the Nvidia stock was in the ‘neutral’ territory, while users felt ‘bearish’ about the Snowflake stock.

Snowflake’s Vice President of AI engineering, Vivek Raghunathan, praised Reka AI’s talent, saying very few companies can build what Reka AI has.

“Almost everyone at that level of talent is at OpenAI, Meta or Anthropic. Reka is one of the rare independents — and they’ve proven they can compete,” he added.

Reka AI was founded in 2022 by former researchers from Alphabet Inc.’s (GOOG) (GOOGL) Google and Meta Platforms Inc. (META).

Snowflake had previously explored the possibility of acquiring Reka AI in a deal reportedly valued at over $1 billion. It fell apart after the two companies decided to remain independent, while continuing to collaborate.

Reka AI’s solutions comprise visual intelligence platforms for video editing and search, to web agents for researching complex questions.

Nvidia’s shares have gained 28% year-to-date, while Snowflake’s shares have surged 40% during this period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Dow Futures Edge Lower As Investors Exercise Caution After Record S&P 500 Close: GM, KO, NXPI, AZN Among Stocks To Watch