Reflection AI startup, backed by chip manufacturer Nvidia, is in talks to raise $2.5 billion at a pre-money valuation of $25 billion, according to people familiar with the matter. The company builds freely available open-source artificial intelligence models for businesses, universities, and research labs.
JPMorgan Chase Joins the Funding Round
JPMorgan Chase is in talks to participate in the round through its Security and Resiliency Initiative. The bank formed that initiative in December to invest in U.S. companies operating in sectors critical to the economy and national security. JPMorgan said it planned to deploy up to $10 billion into venture-backed startups through the initiative. Earlier investor Disruptive is also expected to contribute to the new round.
Nvidia’s Role and Previous Investment
Nvidia invested approximately $800 million in a previous funding round that valued Reflection at $8 billion. The startup has yet to generate meaningful revenue. Nvidia has been introducing Reflection to potential customers, including foreign governments seeking to develop domestic AI infrastructure. Thousands of Nvidia chips will power data centers supporting those projects.
Reflection AI Startup Targets Sovereign AI Markets
Reflection recently committed several billion dollars to build AI models customized for the Korean language in a deal with South Korean conglomerate Shinsegae Group. The company plans to pursue similar agreements with the goal of becoming the open model used by sovereign clouds in U.S.-allied nations. Proponents of such systems have labeled them “sovereign AI.”
“Open models are Trojan horses for the infrastructure they bring with them.”
Misha Laskin, Chief Executive Officer, Reflection
Countering Chinese Open-Source AI Models
Investors have described Reflection as the “DeepSeek of the West,” positioning it as an alternative to open-source AI models offered by Chinese companies. U.S. AI labs have not prioritized open-source development, raising concerns that other countries may adopt Chinese technology by default. Reflection is part of a broader effort to address that gap.
Reflection is also a founding member of the Nemotron Coalition, a consortium assembled by Nvidia to develop open AI models. Other members include AI startups Cursor and Thinking Machines Lab. The coalition represents Nvidia’s broader strategy to build an open-source ecosystem running on its chips.
Company Background and Investors
CEO Misha Laskin, a Russian-Israeli researcher who previously worked at Google’s DeepMind, founded Reflection in 2024. The company has raised more than $2 billion to date, excluding the latest financing round. Investors include 1789 Capital, where Donald Trump Jr. is a partner, as well as Lightspeed Venture Partners, CRV, and Sequoia Capital. The latest round is part of a broader wave of investment in so-called neolabs, which prioritize long-term AI research over short-term profits.