Nvidia (NVDA.O) has officially completed its acquisition of Israeli AI startup Run:ai, the companies announced on Monday. The $700 million deal, which was initially unveiled in April, successfully navigated regulatory scrutiny and has now received the green light from the European Commission and the U.S. Department of Justice.
Run:ai, a leader in optimizing AI infrastructure, will now be integrated into Nvidia’s broader strategy, helping developers enhance the performance of artificial intelligence workloads. The acquisition marks a significant move for Nvidia, which continues to dominate the market for graphics processing units (GPUs), the critical hardware powering AI advancements.
In early December, the European Commission granted unconditional approval for the acquisition after conducting a thorough antitrust review. While the EU regulators initially raised concerns over potential competition issues, particularly regarding Nvidia’s already dominant position in the GPU market, they concluded that the deal would not substantially harm market competition. Nvidia commands around 80% of the global GPU market share, which made regulatory approval a key hurdle for the deal.
The European Commission’s decision followed months of investigation, during which concerns were raised about Nvidia’s growing control over AI-related infrastructure, as well as its potential impact on competition in the broader semiconductor industry. Ultimately, the commission determined that Nvidia’s acquisition of Run:ai would not impede fair competition or hinder innovation in the AI sector.
Alongside European approval, Nvidia’s acquisition of Run:ai also attracted attention from U.S. regulators. The U.S. Department of Justice launched its own investigation into the deal, scrutinizing whether Nvidia’s growing market dominance could suppress potential competitors. As of now, no further regulatory challenges have been raised, allowing the deal to proceed smoothly.
Regulatory bodies across both the U.S. and Europe have increasingly focused on scrutinizing large tech companies’ acquisitions of smaller startups, concerned that these deals could stifle competition and prevent emerging rivals from gaining a foothold in key technological sectors like AI.
Following the completion of the deal, Run:ai has announced plans to open-source its software, aiming to broaden its reach across the AI ecosystem. Currently optimized for Nvidia’s GPUs, the company will make its software more accessible to a wider range of hardware, extending its availability beyond Nvidia’s infrastructure and empowering developers to optimize AI workloads across different platforms.
“We believe open-sourcing our technology will allow us to support the entire AI ecosystem and create more opportunities for innovation,” said Run:ai in a statement.
The successful acquisition of Run:ai is a key part of Nvidia’s ongoing strategy to expand its footprint in the AI sector. The move will enhance Nvidia’s position in the AI infrastructure market, as Run:ai’s solutions are designed to help enterprises and developers scale their AI workloads efficiently.
Nvidia’s acquisition of Run:ai represents a significant step forward in the AI industry, solidifying the chipmaker’s dominance in the GPU market while broadening its capabilities in AI infrastructure. As Nvidia continues to lead the way in AI innovation, the completion of this acquisition highlights the company’s ongoing commitment to advancing cutting-edge technologies and supporting developers worldwide.
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