The upcoming deal by NVIDIA and Run:ai saw a massive roadblock when the European Commission first halted the deal for an investigation to look into possible anti-competition concerns, but the latest from the Commission gave its green light to the companies. Initially, the European authorities have claimed that the deal may threaten competition inthe market, especially in the AI space.
NVIDIA recently made a significant run towards being the highest-valued company in the world and defeating Apple, and this feat was largely attributed to their massive AI developments and presence in the industry.
EU Green Lights NVIDIA’s Acquisition of Run:ai After Probe
A new report from Reuters shared that the European Commission has given their green light to the NVIDIA and Run:aideal which will have the massive semiconductor company acquire the AI startup. According to the Commission, it has given the company an “unconditionally” approval for the deal to proceed, following an inquiry from less than two months ago.
It was previously revealed by the Commission that NVIDIA’s deal would focus on increasing the second most valuable company’s control in the GPU industry, but after the investigation, it concluded that it does not raise any flags.
The company’s plans for acquiring Run:ai faced this inquiry and had to seek an antitrust clearance from the Commission as it allegedly brought threats to the markets in both NVIDIA and Run:ai’s industries.
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NVIDIA’s Bid for Run:ai Looks to Accelerate the Space
Last April, NVIDIA announced its bid to acquire the Israeli startup, Run:ai, for a deal valued at $700 million, as it plans to deliver a GPU orchestration software using the Kubernetes-based workload management provider.
NVIDIA and Run:ai has long collaborated on massive projects since 2020, and both companies look to expand their services to improve more infrastructure use via this deal.
NVIDIA’s Massive Growth Thanks to AI
NVIDIA made a significant entry into the artificial intelligence industry and their massive bets in the fairly new technological space have paid off, with the company’s GPU hardware first seeing significance as it was adopted by many AI developers in the industry. Because of its AI chips, the company has seen unprecedented performance and cemented its legacy as one of the top names in the AI space.
Last November, the company was able to achieve its biggest milestone to date as it took the title of “World’s Largest Company” in terms of its valuation after being able to achieve a $3.73 trillion value. The company was able to surpass Apple who has long held the position as the Cupertino tech giant only had a $3.38 trillion valuation, boasting of an 850 percent growth since 2022.
While Apple was able to take the top spot again, NVIDIA demonstrated that it could rise to the top and be one of the largest companies in the world thanks to its strategic focus on artificial intelligence.
Now, NVIDIA is looking to expand its company more, particularly with their latest plans to acquire Run:ai, a company that will help them manage their workloads, as well as optimize their infrastructure in hybrid environments or via the cloud. After seeing an EU inquiry regarding the deal, the Commission found that everything checked out for NVIDIA and Run:ai, allowing them to proceed with the acquisition.
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