Nebius Acquires AI Optimization Startup Eigen AI for $643 Million

Nebius Group NV, a Dutch operator of AI data centers, is acquiring Eigen AI Inc. for $643 million in cash and stock. The deal is expected to close in just a few weeks.

Eigen AI specializes in optimizing open-source AI models, improving speed and hardware efficiency by replacing standard code kernels with custom modules. This technology will be integrated into Nebius' managed inference service, Token Factory, which allows developers to run AI models without managing the underlying GPUs.

Eigen AI's software also compresses model weights and enhances the KV cache, reducing memory demands. A key focus will be on the platform's post-training features, which use a method called LoRA to fine-tune models more efficiently by adjusting only a small number of external parameters.

Eigen AI's employees will join Nebius, helping establish a new engineering hub in the Bay Area.