Nvidia acquires enterprise predictive AI startup Kumo for more than 400 million dollars
Nvidia $NVDA is buying Kumo AI, a five-year-old startup that sells predictive AI software to enterprises, for more than $400 million, per reports from PYMNTS and Tech Startups. Kumo's clients include Reddit $RDDT and DoorDash $DASH. All three co-founders join Nvidia.
Nvidia $NVDA is adding another software layer on top of its chip business. The company has acquired Kumo AI, a five-year-old startup that sells predictive AI software to large enterprises, in a deal worth more than $400 million, as reported by PYMNTS and Tech Startups. Kumo's technology represents a company's internal data as a graph of nodes and edges and runs graph neural networks on top of it, letting businesses generate predictions such as customer behavior or demand directly from their existing databases. The startup released its latest foundation model, KumoRFM-2, in April. Its customer list includes Reddit $RDDT, DoorDash $DASH and the British retailer Sainsbury's. The deal brings Kumo's three co-founders, Vanja Josifovski, Hema Raghavan and Jure Leskovec, into Nvidia. Leskovec is one of the most cited researchers in the field of graph neural networks, and the founding team's move suggests Nvidia wanted the talent as much as the product. Nvidia has been steadily buying smaller AI software companies as it expands beyond selling chips into offering a fuller enterprise AI stack, and Kumo's enterprise-prediction focus slots into that effort. Reporting on the acquisition first appeared in The Information and was subsequently confirmed across multiple outlets.