Lila Sciences Said in Talks for Funds at $8.5 Billion Valuation

Artificial intelligence research startup Lila Sciences Inc. is in talks to raise about $2 billion at an expected valuation of about $8.5 billion before the new money, according to people familiar with the matter.

The Series B financing is anchored by the California Public Employees’ Retirement System and Nvidia Corp.’s NVentures, said the people, who asked not to be identified because the information was private.

Spokespeople for Lila and CalPERS declined to comment. A representative for Nvidia couldn’t be immediately reached for comment.

Lila’s valuation has skyrocketed in the past year on the promise that it will be able ...