Posted By Global Banking and Finance Review
Posted on December 30, 2024
(Reuters) - Chipmaker Nvidia has completed its acquisition of Israeli AI firm Run:ai, the startup said on Monday, following antitrust scrutiny over the buyout.
The European Commission granted unconditional approval to Nvidia's $700 million bid for Run:ai, which helps developers optimize infrastructure for AI, earlier in December after saying in October that the deal would require EU antitrust clearance.
The EU antitrust watchdog had warned that the deal threatened competition in the markets where the companies operate.
Its probe into the deal focused on practices that could strengthen Nvidia's control over the market for graphics processing units (GPUs), which are the sought-after chips often employed in AI-linked tasks.
Nvidia dominates the market for AI graphics processors and commands about 80% of its share.
However, the European Commission concluded earlier in December that Run:ai's acquisition, originally announced in April, would not raise competition concerns.
The U.S. Department of Justice is also investigating the chip giant's buyout of Run:ai on antitrust grounds, Politico had reported in August.
Regulators on both sides of the Atlantic have recently stepped up their scrutiny of tech giants' acquisitions of startups on concerns that such deals may shut down potential rivals.
Run:ai plans to make its software open-source, it said in a blog post.
"While Run:ai currently supports only Nvidia GPUs, open sourcing the software will enable it to extend its availability to the entire AI ecosystem," it said.
(Reporting by Arsheeya Bajwa in Bengaluru and Max Cherney in San Francisco; Editing by Shreya Biswas)