EU Scrutinizes NVIDIA's $700M Run:ai Deal Amid Concerns of GPU Market Dominance

The European Union's antitrust regulators are currently examining NVIDIA's $700 million acquisition of Run:ai, with a particular focus on NVIDIA's potential bundling practices concerning its graphics processing unit (GPU) hardware and software packages. As part of this scrutiny, the regulators are inquiring whether NVIDIA customers receive discounts when purchasing GPU software products along with hardware.

A questionnaire observed by external media reveals the EU's interest in potential actions that could further entrench NVIDIA's dominance over the GPU sector. NVIDIA already commands an impressive 84% market share, significantly outpacing competitors such as Intel and AMD. Given the extensive use of GPUs in data centers, gaming consoles, and cryptocurrency mining, this investigation holds substantial weight for industry stakeholders.

The European Commission, which enforces competition across the EU, had previously cautioned that the acquisition might pose a threat to market competition, stipulating December 20 as the deadline for its preliminary investigation. The commission has asked NVIDIA's customers if any competitive advantage arises for a company offering bundled GPU scheduling software and hardware/GPU. It is probing whether end users are compelled or incentivized, potentially through discounts, to purchase bundled products.

Furthermore, the customers are being queried about the prospective implications on their operations if NVIDIA were to run Run:ai software on an open-source basis. These questions are pivotal as they aim to assess the competitive landscape post-acquisition and the potential shifts in market dynamics.