Nvidia, the U.S. semiconductor giant, is seeking European regulatory approval for its proposed $700 million acquisition of Israeli AI startup Run:ai, following a request from Italy’s antitrust authority. Despite the acquisition not meeting the EU’s usual revenue threshold for review, Italy’s competition agency flagged potential risks to fair competition within the European Economic Area (EEA) due to Nvidia’s market dominance in AI technology.
Run:ai, known for its AI infrastructure optimization technology, has a software platform that helps enterprises manage and enhance their AI infrastructure usage. Nvidia, a key supplier of GPUs widely used in AI applications, views Run:ai’s solutions as complementary to its hardware offerings. However, the European Commission, in accepting Italy’s referral, warned that the deal “threatens to significantly affect competition” within the EEA and would be examined closely.
Nvidia, whose GPUs are already considered the industry standard for AI, expressed its willingness to work with the EU to address regulatory questions and maintain open access to AI resources across platforms. “After the acquisition closes, we’ll continue to make AI available in every cloud and enterprise, and help customers select any system and software solution that works best for them,” stated an Nvidia spokesperson.
This regulatory scrutiny aligns with increasing oversight in both the EU and U.S. around acquisitions by major tech firms amid fears of reduced competition. Nvidia has previously faced similar regulatory challenges, most notably its abandoned acquisition of British chipmaker ARM.
