Nvidia Corp. (NASDAQ:NVDA) has reportedly agreed to acquire Shoreline.io, a software startup, for an estimated 0 million.

What Happened: The acquisition deal was recently finalized, according to sources familiar with the matter, as reported by Bloomberg on Tuesday. The sources, who chose to remain anonymous, disclosed that the deal values Shoreline at approximately 0 million.

Shoreline, based in Redwood City, California, specializes in developing software that identifies issues and incidents within computer systems and automates processes to resolve them. The company was established in 2019 by Anurag Gupta, a former Amazon Web Services executive.

Nvidia, a key player in the development of computer systems essential for creating and running AI software, has been actively acquiring startups. The company, with a market value of $3.3 trillion, does not always publicly disclose acquisitions that are not considered material to its operations.

By adding new capabilities such as software, networking, and pretrained AI models, Nvidia aims to make technology adoption more accessible to a wider audience. The company also seeks to diversify its revenue sources, reducing its reliance on industry giants like Microsoft Corp. and Amazon in the cloud computing sector.

Shoreline has raised approximately $57 million and is backed by investors including Dawn Capital, Insight Partners, and Canvas Ventures.

Nvidia and Shoreline have yet to respond to the queries sent by Benzinga.

Why It Matters: Nvidia's acquisition of Shoreline comes at a time when the company has been making significant strides in the tech industry. Just a day before the acquisition news, Nvidia was declared the most valuable public company in the world, surpassing giants like Microsoft and Apple. This acquisition is another step in Nvidia's strategy to consolidate its position in the AI and tech industry.

Meanwhile, Ellen Hazen, Chief Market Strategist at F.L. Putnam Investment Management, praised Nvidia's recent financial performance and growth, hinting at the start of a significant era with Nvidia leading the way. She noted that Nvidia's revenue and earnings are up, drawing parallels to when Apple overtook Exxon as the biggest company in America by market capitalization in 2011.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari