Nvidia has completed its acquisition of Israeli AI firm Run:ai for $700 million after regulatory hurdles were cleared by the European Commission and the U.S. Department of Justice is also investigating the deal on antitrust grounds. The acquisition, announced in April, was initially met with scrutiny over concerns that it would strengthen Nvidia's control over the market for graphics processing units (GPUs) used in AI-linked tasks. However, the European Commission concluded that the deal would not raise competition concerns and Run:ai plans to make its software open-source.
The European Commission approved Nvidia's $700 million bid for Run:ai, an Israeli company that helps developers optimize infrastructure for artificial intelligence. The deal was initially flagged as a potential threat to competition in the markets where the companies operate, but it ultimately received unconditional approval after Nvidia completed its acquisition of the firm.
The European Commission has approved Nvidia's acquisition of Run:ai, a company that helps developers optimize infrastructure for AI, after initially raising concerns about the deal's potential impact on competition. The commission had warned that the deal could strengthen Nvidia's control over the market for graphics processing units (GPUs), which are used in AI-linked tasks and where Nvidia dominates with an 80% share. However, the commission ultimately concluded that the acquisition would not raise competition concerns after Run:ai announced plans to make its software open-source, making it available to a wider range of users beyond just Nvidia GPUs. The US Department of Justice is also investigating the deal on antitrust grounds.
https://channelnewsasia.com/business/nvidia-closes-us700-million-runai-acquisition-after-regulatory-hurdles-4831696