The European Commission has unconditionally given its approval for Nvidia’s $700 million acquisition of Israeli startup Run:ai. The deal had been under close scrutiny due to concerns over potential competition issues within the European Economic Area (EEA). The case was referred to the Commission by an Italian competition authority in September, which questioned whether the proposed acquisition could raise any competition concerns in the EEA.
Following a thorough examination, the EU unequivocally approved the proposed acquisition of the Israeli startup. The Commission stated that the transaction would not give rise to any competition concerns in the EEA. The EU’s investigation revolved around activities that could potentially consolidate Nvidia’s dominance over GPUs, highly desirable chips that split and process computer tasks. However, the EU concluded that the deal would not elicit any such concerns in the EEA.
Nvidia is a leading designer and supplier of GPUs for data center applications. Meanwhile, Run:ai is a provider of GPU orchestration software that allows corporate clients to manage their computing infrastructure.
“Since Nvidia is a leading producer of key hardware for AI applications used in the EU and beyond, it was important to carefully check whether its acquisition of start-up software company Run:ai may have negatively impacted competition in critical markets which are key for future competitiveness,” stated Teresa Ribera, executive vice-president for clean, just, and competitive transition at the European Commission. She further added, “But our market investigation confirmed to us that other software options compatible with Nvidia’s hardware will remain available in the market.”
The statement further underscored that the areas of activity of the two companies do not overlap. Moreover, the EU Commission retains the authority to oversee mergers and acquisitions of large multinational corporations operating within EU countries.
Nvidia first announced this acquisition in April, stating that the deal would allow customers to use their computing resources more efficiently. “Run:ai enables enterprise customers to manage and optimize their compute infrastructure, whether on-premises, in the cloud or in hybrid environments,” Nvidia noted in a blog post dated April 24.
Run:ai co-founder and CEO Omri Geller disclosed that the startup had been collaborating with Nvidia since 2020, expressing that both companies “share a passion for helping our customers make the most of their infrastructure.”
In October, the EU Commission specified that Nvidia would need to obtain approvals and antitrust clearance for the transaction due to concerns that the deal could undermine competition within the sectors where the two companies operate. Nvidia spokesperson John Rizzo responded to the EU’s concerns by assuring that the company was ready to provide any necessary information to regulators regarding the deal, stating, “After the acquisition closes, we’ll continue to make AI available in every cloud and enterprise, and help customers select any system and software solution that works best for them.”
This development comes at a time when the big tech industry has been facing increased scrutiny over the acquisition of smaller rival firms, which had previously seen minimal oversight. Firms such as Amazon, Microsoft, and Google have also been examined for their investments in AI startups and other tech firms as they expand their AI operations and maintain their competitive edge. The EU has probed partnerships between Microsoft and OpenAI, as well as Google and Samsung, among others.