Nvidia-backed Reflection AI secures $2 billion funding, valued at $8 billion

Reflection AI, a fast-rising artificial intelligence startup backed by Nvidia, announced on Thursday it has raised $2 billion in fresh funding, pushing its valuation to $8 billion. The massive round underscores investor enthusiasm for startups automating software development through AI.

The funding attracted major names, including former Google CEO Eric Schmidt, Citi, Donald Trump Jr.-backed 1789 Capital, and existing investors Lightspeed and Sequoia. Reflection AI, founded in 2024 by former DeepMind researchers Misha Laskin and Ioannis Antonoglou, builds AI systems that can autonomously write, test, and optimize software — a rapidly expanding niche within the AI industry.

The new valuation marks a huge leap from the company’s last funding round, when it raised $130 million at a $545 million valuation, according to PitchBook.

Investor appetite for AI ventures remains robust. Global venture capital funding jumped 38% year-over-year in Q3 2025 to $97 billion, with nearly half of that going to AI companies. Reflection AI’s momentum reflects how automation-focused startups are drawing capital on par with heavyweights like OpenAI and China’s DeepSeek.

The company said the funds will accelerate product expansion and recruitment as it scales operations globally amid intensifying competition in AI-driven coding tools.