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Nvidia (NVDA.US) Acquisition of AI Startup Run:ai Under EU Review

Market IntelThursday, Oct 31, 2024 9:40 am ET

1min read

Due to competition issues, Nvidia's (NVDA.US) acquisition of Israeli AI startup Run:ai is under review in Europe.

The European Commission said that, despite the transaction not meeting the notification threshold under the EU Merger Regulation, Italy expressed concerns under the Italian Competition Act.

The European Commission wrote in a statement: "These powers enable the Commission to review these transactions when the national turnover thresholds are not met, the transaction raises specific competition concerns and the other conditions of the Italian Competition Act are met."

The European Commission added that it is looking into the deal to see if it "materially" affects competition in markets in which Nvidia and Run:ai are active.

Nvidia spokesperson said: "We are happy to answer any questions regulators may have about Run:ai. Post-closing, we will continue to deliver AI in every cloud and enterprise and help our customers choose the best system and software solutions for them."

Nvidia announced the acquisition of Run:ai in April this year. Financial terms were not disclosed, but reports said Nvidia paid about $700 million for Run:ai. Run:ai is understood to have improved the efficiency of AI chips by running multiple workloads in parallel, reducing the number of GPUs needed to complete tasks.

In August, it was reported that the US Department of Justice was also investigating Nvidia's acquisition of Run:ai on antitrust grounds.

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