Nvidia completes $700M acquisition of AI startup Run:ai after antitrust scrutiny, plans open-source shift

After months of regulatory scrutiny, Nvidia has officially completed its $700 million acquisition of Israeli AI startup Run:ai. The announcement on Monday comes after an extended antitrust review, highlighting the challenges Nvidia faced in closing the deal.

The European Commission approved the acquisition earlier in December without conditions, clearing the way for Nvidia’s plans. This followed the Commission’s October statement that the buyout would require further antitrust examination.

Initially announced in April, the acquisition centers on Run:ai’s tools that simplify AI hardware management, streamlining operations for developers and IT teams. Based in Tel Aviv, Run:ai specializes in optimizing AI infrastructure—a critical area for companies working with advanced machine learning models.

The EU antitrust regulators had expressed concerns that the acquisition could tighten Nvidia’s grip on the market for graphics processing units (GPUs), a space where it already commands around 80% market share, Reuters reported. GPUs are essential for many AI applications, making Nvidia a dominant force in the industry. Despite these initial warnings, the European Commission concluded that the deal would not stifle competition.

In the U.S., the Department of Justice is also investigating the acquisition, as reported by Politico in August. Regulators on both sides of the Atlantic have increased scrutiny of major tech acquisitions, aiming to prevent startups from being absorbed in ways that might limit competition.

Open-Source AI Shift

Run:ai has announced plans to make its software open-source, aiming to broaden its reach beyond Nvidia GPUs. According to a blog post from the company, “While Run:ai currently supports only Nvidia GPUs, open sourcing the software will enable it to extend its availability to the entire AI ecosystem.”

For Nvidia, the acquisition aligns with its ongoing strategy in the AI space. The company’s GPUs are widely used in training tools like ChatGPT, contributing to Nvidia’s record-breaking growth in recent years. This acquisition strengthens its position in AI infrastructure while addressing regulatory hurdles.

Run:ai was founded in 2018 by Omri Geller, Ronen Dar, and Professor Meir Feder, who worked together at Tel Aviv University. The startup’s platform enables AI models to operate across various hardware environments, whether on-premises, in the cloud, or at the edge. This approach supports flexibility and scalability for organizations managing complex AI workloads.

As Nvidia integrates Run:ai into its portfolio, all eyes will be on how the company navigates remaining regulatory investigations and leverages this acquisition to expand its footprint in the AI infrastructure market.