Nvidia Corporation has received unconditional approval from the European Union to acquire Israeli startup Run:ai, a move that bolsters its AI computing capabilities while sidestepping antitrust concerns.
The European Commission confirmed on Friday that the transaction poses no significant competition threats across the EU’s 27 member states, despite Nvidia’s leading position in the AI chip market.
“Our market investigation confirmed to us that other software options compatible with Nvidia’s hardware will remain available in the market,” said Teresa Ribera, the EU’s newly appointed antitrust chief.
Strengthening AI Capabilities
Run:ai, founded in 2018 by Omri Geller and Ronen Dar, specializes in software designed to optimize artificial intelligence computing resources. The startup has been collaborating with Nvidia since 2020. Although the financial terms of the deal were not disclosed, Israeli publication Calcalist estimated its value at $700 million.
This acquisition marks Nvidia’s latest expansion in Israel following its $7 billion purchase of Mellanox Technologies in 2020.
Global Scrutiny on Nvidia’s AI Dominance
Nvidia’s graphics processing units (GPUs), originally popularized in the gaming industry, have become critical components in training large language models and other AI systems. While companies such as Amazon are exploring alternatives to reduce Nvidia’s market dominance, the demand for its chips remains overwhelming. Each unit, essential for cutting-edge AI applications, can cost tens of thousands of dollars and is in limited supply.
The approval for this deal reinforces Nvidia’s foothold in the AI space without raising competitive red flags, highlighting the company’s continued influence on the global AI market.
