Nvidia’s $700 Million Buyout of Run:ai Gets EU Approval, Deal Finalized

Nvidia has successfully finalized its acquisition of the Israeli artificial intelligence company Run:ai, the startup confirmed on Monday. The $700 million deal, which was met with antitrust scrutiny in both the United States and the European Union, has now been cleared by regulators.

The European Commission gave the green light to the acquisition in early December after conducting an in-depth review of the transaction. Initially, the deal faced potential delays due to concerns that it could stifle competition within the highly competitive AI and graphics processing unit (GPU) markets. The EU’s antitrust watchdog had expressed worries that Nvidia’s control over the GPU sector, where it holds an 80% market share, would increase as a result of the acquisition.

Despite these concerns, the European Commission ultimately concluded that Nvidia’s purchase of Run:ai would not pose a threat to market competition. The EU’s approval followed an investigation into the potential market effects of Nvidia’s dominant position in AI-related GPU technologies. According to Reuters, this approval was granted after the Commission deemed the acquisition, announced in April, would not hinder the development of competitors in the space.

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Meanwhile, the U.S. Department of Justice also continues to scrutinize the deal. As reported by Politico in August, American regulators are assessing whether the acquisition could lead to unfair market consolidation or reduce competition within the rapidly evolving AI sector.

Run:ai, which specializes in optimizing infrastructure for AI development, has revealed plans to open-source its software as part of its continued expansion. In a blog post, the company noted that its software, which currently supports only Nvidia GPUs, will soon be available to the broader AI ecosystem. “While Run:ai currently supports only Nvidia GPUs, open sourcing the software will enable it to extend its availability to the entire AI ecosystem,” the company stated.

Source: Reuters