Nvidia closes $700 million Run:ai acquisition after regulatory hurdles

(Reuters) – Chipmaker Nvidia (NASDAQ:NVDA) has accomplished its acquisition of Israeli AI agency Run:ai, the startup stated on Monday, following antitrust scrutiny over the buyout.

The European Fee granted unconditional approval to Nvidia’s $700 million bid for Run:ai, which helps builders 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 competitors within the markets the place the businesses function.

Its probe into the deal centered on practices that would strengthen Nvidia’s management over the marketplace for graphics processing items (GPUs), that are the sought-after chips usually employed in AI-linked duties.

Nvidia dominates the marketplace for AI graphics processors and instructions about 80% of its share.

Nevertheless, the European Fee concluded earlier in December that Run:ai’s acquisition, initially introduced in April, wouldn’t elevate competitors issues.

The U.S. Division of Justice can also be investigating the chip large’s buyout of Run:ai on antitrust grounds, Politico had reported in August.

Regulators on either side of the Atlantic have lately stepped up their scrutiny of tech giants’ acquisitions of startups on issues that such offers could shut down potential rivals.

Run:ai plans to make its software program open-source, it stated in a weblog publish.

“Whereas Run:ai presently helps solely Nvidia GPUs, open sourcing the software program will allow it to increase its availability to the whole AI ecosystem,” it stated.