Nvidia, the American semiconductor giant, is seeking European regulatory approval for its proposed $700 million acquisition of Israeli artificial intelligence startup Run:ai, following a request from the Italian antitrust watchdog. Although the acquisition does not meet the EU’s usual revenue threshold for review, the Italian Competition Agency has cited 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 organizations manage and enhance the use of AI infrastructure. Nvidia, a leading supplier of GPUs widely used in AI applications, sees Run:ai solutions as complementary to its hardware offerings. However, in accepting the Italian referral, the European Commission warned that the deal “threatens to significantly impact competition” within the EEA and would be closely studied.
Nvidia, whose GPUs are already considered the industry standard for AI, has expressed its willingness to work with the EU to address regulatory issues and maintain open access to AI resources across platforms. “After the acquisition closes, we will continue to make AI available in every cloud and enterprise, helping customers choose which system or software solution is right for them,” an Nvidia spokesperson said.
The investigation reflects a broader regulatory push, as watchdogs in both the European Union and the United States take a closer look at acquisitions in the technology sector over concerns they could stifle competition. Nvidia has faced prior scrutiny, including an investigation by the US Department of Justice regarding its influence in the US