Nvidia is reportedly nearing a deal to acquire Lepton AI, a startup founded by former Alibaba Cloud Vice President, for several hundred million dollars. This acquisition aims to enhance Nvidia's capabilities in AI inference services and cloud computing. Lepton AI specializes in renting Nvidia GPU servers, positioning itself as a competitor to other cloud computing firms. The move comes as Nvidia seeks to solidify its leadership in the AI cloud services market, following a recent $225 million fundraising round by an Nvidia-backed AI cloud provider to purchase additional Nvidia chips. Intel's new CEO has also expressed intentions to compete with Nvidia in the AI server sector, indicating a growing rivalry in the industry. Concerns have been raised by short seller Jim Chanos regarding Nvidia's potential acquisition of Lepton AI, suggesting it may indicate inventory risks.