2 days Ago By Ratul Maitra
US-based chipmaker Nvidia recently completed its acquisition of Run:ai, an Israeli artificial intelligence firm, as per a release from the latter. The chipmaker reportedly acquired the firm in a $700 million deal. On its blog, Run:ai said it would turn its software open-source to “help the community build better AI, faster.
” It further noted that even though it operates exclusively on Nvidia Graphics Processing Units (GPUs) at the moment, “open sourcing the software will enable it to extend its availability to the entire AI ecosystem.” Why it Matters This comes after the European Commission in 2024 warned that the deal would risk competition in markets where the companies operated. It also faced opposition from the US Department of Justice, which issued subpoenas to several companies, including Nvidia, as part of its probe into potential antitrust violations.
It highlighted concerns around the integration of Nvidia chips with Run:ai software, and whether that would make it more difficult for customers to switch to market competitors. On the EU front, the European Commission in December granted unconditional approval to the deal after its investigation concluded that the acquisition would not raise any competition concerns. Regulators’ Stance in Different Markets While the US Federal Trade Commission (FTC) and the Department of Justice scrutinised multiple deals in 2023 and 2024, neither of the US Government bodies went so far as to bring a stop to tech deals through the means of enforcement action.
Regulators in the country, however, have adopted a stern attitude towards acquisitions such as the one in question, with previous examples like the FTC opposing Nvidia’s purchase of Arm, Meta’s purchase of Within and Microsoft’s purchase of Activision in the past. The situation appears to be different in Run:ai’s native Israeli market, wherein regulation from the Israeli Competition Authority (ICA) occurs through avenues such as administrative and criminal enforcement using ICA’s own policy, legislative changes, and relevant case law. Examples in this domain would include ICA’s imposition of a 6.
5 month jail term to the defendant, the Deputy CEO of Israel-based Al-Red Elevator in January 2023, following his confession – as part of a plea bargain – of having partaken in a cartel between several companies in the sector. Also Read: Support our journalism: For You.
