Juniper Networks soars on $13 billion AI-linked takeover talks with HPE

Updated at 7:26 AM EST

Juniper Networks  (JNPR) - Get Free Report shares soared Tuesday amid reports that the IT-networking-products maker is in takeover talks with Hewlett Packard Enterprise  (HPE ) - Get Free Reportas it looks to accelerate its AI product rollout. 

The Wall Street Journal reported that HPE, which was spun out from Hewlett Packard in 2015, is in advanced talks to buy the Sunnyvale, California-based tech group for around $13 billion as it looks to enhance its small-business cloud offerings with AI technologies.

Mist AI, Junipers' developing division, leverages large-language models across its network equipment, and recently embedded the unit into its network access control platform. 

HPE, meanwhile, told investors last year that it wanted to expand the launch of a new cloud service that uses AI technologies similar to Microsoft-backed  (MSFT) - Get Free Report ChatGPT.

The group also unveiled a partnership with Nvidia  (NVDA) - Get Free Report in November aimed at building an enterprise computing solution for generative AI.

“Together, HPE and Nvidia are in a unique position to deliver a comprehensive AI-native solution that will dramatically ease the journey to develop and deploy AI models with a portfolio of preconfigured solutions,” HPE Chief Executive Antonio Neri said at the time. 

“The strategic collaboration between HPE and Nvidia will dramatically reduce barriers for customers looking to transform their businesses with AI.” 

Juniper Networks shares were marked 23.7% higher in premarket trading to indicate an opening bell price of $37.37 each, a move that would peg its market value at around $12 billion.

HPE shares, meanwhile, slumped 10.3% to $15.90 each, a move that would tip the stock into negative territory for the past six months.

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