AI startup Reflection signs over $1 billion computing deal with Nebius

AI startup Reflection signed a deal worth over $1 billion with Nebius to secure computing capacity, including access to Nvidia's latest chips, building on a previous agreement with SpaceX. The deal aims to support Reflection's development of open-source AI models as demand for computing power outpaces supply.

July 14 Reuters - AI startup Reflection said on Tuesday it has signed a more than $1 billion deal to secure computing capacity from Nebius, including access to Nvidia's latest chips. The move builds on Reflection's June agreement with SpaceX for computing capacity, a deal that media reports said would see the startup pay about $150 million a month through 2029. AI startups are racing to lock in the computing power needed to train and run their models as demand growth from businesses adopting the technology outpaces new data-center supply. Reflection, launched by two former Google DeepMind researchers, develops open-source models that serve as an alternative to the offerings from OpenAI and Anthropic. Open-source models, typically easier to customize and cheaper to run than closed-weight rivals, have drawn growing interest as rising AI bills push businesses to cut costs. Last month's U.S. curbs on Anthropic's advanced models also exposed the risks of relying on providers that can be cut off overnight. "The need for open models is clear, and this additional compute capacity will allow Reflection to continue to build and train frontier AI models at scale," said Reflection's chief technology officer and co-founder, Ioannis Antonoglou. Reporting by Aditya Soni in Bengaluru; Editing by Shilpi Majumdar