Technology
EU watchdog probes Nvidia hardware bundling as it scrutinises Run:ai deal
Published by Jessica Weisman-Pitts
Posted on December 4, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 4, 2024
2 min readLast updated: January 28, 2026
By Foo Yun Chee
BRUSSELS (Reuters) – EU antitrust regulators are asking Nvidia customers if they have been offered discounts to buy the company’s graphics processing unit (GPU) software products together with its hardware as they scrutinise its $700 million bid for Run:ai.
In a questionnaire seen by Reuters, the EU watchdog focused on potential practices that could tighten Nvidia’s grip on GPUs, where it has a near-monopoly with an 84% market share, far ahead of rivals Intel and AMD.
GPUs are chips that break down a computer task into smaller pieces and process them together. They are highly sought after by technology companies for their data centres, by video game console makers, and even by bitcoin miners.
The European Commission, which acts as the European Union’s competition enforcer, has previously warned that the deal threatens competition in markets where the two companies operate and has set a Dec. 20 deadline for its preliminary review.
“Does a company that offers a bundle of GPU Orchestration Software and hardware/GPU have a competitive advantage?” the Commission document asked Nvidia customers.
“To your knowledge, have end-users been required or induced (for example, with discounts) to purchase GPU Orchestration Software as a bundle together with software or other hardware?”
Respondents were also asked about the impact of the deal on their business if Nvidia were to run Run:ai as open-source.
Nvidia was not immediately available for comment.
(Reporting by Foo Yun Chee; Editing by Alexander Smith)
A graphics processing unit (GPU) is a specialized electronic circuit designed to accelerate the processing of images and videos. It breaks down complex tasks into smaller pieces for faster processing, making it essential for gaming, data centers, and cryptocurrency mining.
Antitrust regulation refers to laws and policies aimed at promoting competition and preventing monopolistic practices in the marketplace. These regulations ensure that no single company can dominate a market to the detriment of consumers and other businesses.
A monopoly exists when a single company or entity is the sole provider of a product or service in a market, giving it significant control over pricing and supply. This can limit competition and harm consumers.
A preliminary review is an initial assessment conducted by regulatory authorities to evaluate the potential impact of a merger or acquisition on market competition. It helps determine if further investigation is needed.
GPU orchestration software manages and optimizes the use of graphics processing units in computing environments, particularly in data centers and cloud services, ensuring efficient resource allocation and performance.
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