Nvidia announced the acquisition of Kumo AI, a Mountain View startup that builds predictive AI models for enterprise analytics and forecasting, to boost its enterprise AI capabilities.

Kumo’s co-founders Vanja Josifovski, Hema Raghavan, and Jure Leskovec moved to Nvidia last month, with their LinkedIn profiles updated to reflect Nvidia employment, though Kumo’s site does not mention the move.

The deal values Kumo AI at over $400 million, and the transaction was publicly disclosed via a LinkedIn post from a Nvidia executive.

Financial terms of the deal were not disclosed.

In the past three months, insiders sold about $164 million worth of Nvidia shares while there were no reported insider purchases, potentially raising questions about near-term confidence.

Nvidia trades with a forward-looking P/E around 32.9, signaling high expectations for growth, though GF Value data was not available at the time.

The Information, a tech-focused outlet, reported the transaction, suggesting added industry context beyond the basics.

Nvidia’s market capitalization sits near $5.2 billion with a GF Score of 95/100, indicating strong long-term return potential supported by financial strength, profitability, and growth.

Kumo’s RFM model aimed to quickly predict outcomes like churn and credit default using a foundation-model approach that minimizes training.

Nvidia stock dipped about 1% on the news of the acquisition.

The market reaction saw Nvidia shares fall roughly 1% on the day the acquisition became public.

Nvidia has a history of smaller-to-mid-sized deals, contrasting with larger recent moves like the Groq acquisition, and its five-year acquisition spend is about $3 billion based on filings.