NVIDIA Acquires Israeli AI Startup Illumex in $60 Mn Deal

NVIDIA has acquired Israeli artificial intelligence startup Illumex in a deal estimated at approximately $60 million, according to industry sources. While financial terms were not officially disclosed, the acquisition marks another strategic move by NVIDIA to deepen its enterprise AI and data infrastructure capabilities.

Illumex had previously raised around $13 million in seed funding from a strong lineup of investors, including Cardumen Capital, Amdocs Ventures, Samsung Ventures, ICI Fund, Jibe Ventures, Iron Nation Fund, Ginnosar Ventures, ICON Fund, Today Ventures, and several angel investors.

Strengthening NVIDIA’s Enterprise AI Strategy

Founded in 2021 by Inna Tokarev Sela, Illumex specializes in enterprise AI solutions designed to align organizational data with business context. Tokarev Sela previously held leadership roles as AVP & Head of AI at Sisense and Senior Director of Machine Learning at SAP, bringing deep expertise in artificial intelligence and data systems.

The startup developed what it calls a “Generative Semantic Fabric” — a platform aimed at bridging the gap between complex enterprise data structures and natural language AI interactions. The technology allows business users to query data using natural language without requiring deep technical knowledge of database schemas or metadata structures.

By enabling contextual understanding and semantic alignment of enterprise data, Illumex sought to improve trust in AI-driven insights. The company positioned itself as a solution to one of the most persistent challenges in AI adoption: ensuring accuracy, reliability, and business relevance in generative AI outputs.

Following the acquisition, Illumex’s employees have joined NVIDIA, further expanding the company’s AI research and development presence in Israel.

Democratizing Enterprise AI

After closing its seed funding round, Tokarev Sela highlighted the startup’s vision of democratizing AI access within enterprises.

The company focused on enabling business users to interact with data through intuitive natural language prompts rather than requiring expertise in technical definitions or backend systems. This approach aimed to remove barriers to AI adoption and empower organizations to extract greater value from their internal data ecosystems.

With enterprises increasingly integrating generative AI into decision-making processes, technologies that improve contextual understanding and reduce hallucinations have become critical. Illumex’s semantic architecture aligns closely with NVIDIA’s broader push into enterprise-grade AI infrastructure.

NVIDIA’s Expanding Presence in Israel

The Illumex acquisition further strengthens NVIDIA’s footprint in Israel, a key innovation hub for the semiconductor and AI giant.

NVIDIA has maintained a significant presence in the country since its $6.9 billion acquisition of Mellanox Technologies in 2019. Following that deal, Mellanox’s headquarters in Yokneam became NVIDIA’s primary Israeli base of operations. Today, NVIDIA employs roughly 5,000 people in Israel, with around 3,000 employees working at the Yokneam campus.

At CES 2026, NVIDIA CEO Jensen Huang underscored Israel’s strategic importance to the company’s global operations. He praised the strength and dedication of NVIDIA’s Israeli workforce, emphasizing their contribution to the company’s continued innovation and growth.

Israel has become a critical center for NVIDIA’s networking, AI, and high-performance computing development, supporting both hardware and software initiatives.

Strategic Implications for Enterprise AI

The acquisition of Illumex aligns with NVIDIA’s broader strategy of expanding beyond GPUs and hardware into full-stack AI platforms. As generative AI adoption accelerates across industries, enterprises are demanding solutions that ensure data integrity, contextual relevance, and governance.

Semantic layer technologies, like those developed by Illumex, play an important role in bridging structured enterprise data with AI models. By embedding domain-specific context into AI systems, organizations can reduce errors and enhance trust in automated insights.

For NVIDIA, integrating Illumex’s capabilities could strengthen its enterprise AI ecosystem, especially in areas such as:

• AI-powered data analytics

• Enterprise knowledge management

• Context-aware generative AI applications

• AI-driven business intelligence

As competition intensifies among global AI leaders, acquisitions of specialized startups have become a key growth strategy. NVIDIA continues to build a comprehensive AI stack that combines advanced chips, networking infrastructure, software frameworks, and enterprise applications.

The Growing Value of Israeli AI Innovation

Israel remains one of the world’s leading hubs for AI and deep-tech innovation. Startups in cybersecurity, data analytics, semiconductor design, and AI infrastructure frequently attract global acquirers.

The Illumex acquisition reinforces the trend of multinational tech companies tapping Israeli talent to enhance AI capabilities. Programs such as Intel Ignite and ICON, in which Illumex participated, have helped accelerate early-stage innovation and global exposure for Israeli startups.

With continued investment and cross-border acquisitions, Israel’s role in shaping the next generation of AI infrastructure is likely to expand further.

Conclusion

NVIDIA’s acquisition of Illumex represents a strategic move to strengthen its enterprise AI portfolio and deepen its technological presence in Israel. By integrating semantic data alignment technology into its AI ecosystem, NVIDIA is positioning itself to address one of the biggest challenges in enterprise AI: building systems that businesses can trust.

As generative AI moves from experimentation to mission-critical deployment, contextual intelligence and data reliability will be central to long-term success. Through acquisitions like Illumex, NVIDIA continues to evolve from a hardware powerhouse into a full-stack AI leader.