Sept 9 (Reuters) - Nvidia ( NVDA )-backed Reflection AI is

raising around $1 billion in a financing that will value the

startup at up to $5.5 billion, the Financial Times reported on

Tuesday, citing people familiar with the matter.

The round could value Reflection between $4.5 billion and

$5.5 billion, including the new investment, FT added.

The announcement could potentially mark a nearly 10-fold

valuation jump merely six months after the company's previous

external fundraising, where it was valued at $545 million,

according to PitchBook data.

Startups leveraging artificial intelligence continue to

attract investor capital, with the nascent technology even

sparking a multi-billion-dollar race for infrastructure build

across Big Tech companies.

Nvidia's ( NVDA ) venture capital arm would invest at least $250

million, the report added. Lightspeed Venture Partners, Sequoia

and Yuri Milner's DST Global are also participating in the

round.

Founded in 2024 by former Google-backed DeepMind

researchers Misha Laskin and Ioannis Antonoglou, Reflection

develops tools that automate coding, a highly valuable use case

of AI.

The latest financing also comes amid the bidding war across

Silicon Valley sparked by AI talent like Laskin and Antonoglou,

with Meta offering salaries and signing bonuses that

liken those of professional athletes.