Nvidia closes $700M acquisition of AI startup Run:ai
Nvidia (NASDAQ:NVDA, ETR:NVD) has finalized its $700 million acquisition of Run:ai, an Israeli AI infrastructure startup, following regulatory scrutiny and approval from the European Commission.
The deal, initially announced in April, grants Nvidia access to Run:ai’s software, which optimizes hardware infrastructure for AI operations.
While the software currently supports Nvidia products exclusively, it will now be open-sourced, allowing competitors like AMD and Intel to adapt it for their own hardware.
Run:ai’s open-source move marks a significant shift in the company’s strategy, expanding the reach of its software across the broader AI ecosystem.
Run:ai said in a statement to the media.
We are eager to build on the achievements we’ve obtained until now, expand our talented team, and grow our product and market reach,
“Open sourcing the software will enable it to extend its availability to the entire AI ecosystem.”
The acquisition faced scrutiny from both the European Commission and the US Department of Justice, who raised concerns about potential competition issues.
Nvidia, which already commands approximately 80% of the GPU market, was under investigation for its dominant position in AI graphics processors. However, the European Commission ultimately concluded that the deal would not harm competition, clearing the path for Nvidia’s purchase.
Shares of Nvidia traded higher on the news, up 0.4% at about $137. The stock has gained more than 185% so far in 2024.
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Nvidia closes $700M acquisition of AI startup Run:ai, source
