Run:AI, an Israeli AI software firm that draws its ties to a mysterious space program back home, has been acquired by Chipmaking giant Nvidia (NVDA, Financial) which has finally cemented its $700 million acquisition of the company as a big step towards achieving total control of AI infrastructure. Regulators on both sides of the Atlantic descended on the deal, announced in April 2024, with antitrust scrutiny before giving it the go-ahead.
In December, the European Commission gave the deal unconditional approval, saying it would not create any competition issues. The merger would concentrate control of an 80 percent share of the GPU market already held by Nvidia, said EU regulators earlier, and warned that there could be risks. But after a detailed probe, the watchdog found no proof that the deal would squelch competition.
That trend of tech mavens acquiring bit players appears to be fuelling further regulatory scrutiny in the antitrust investigation being conducted by the U.S. Department of Justice into the merger. Critics argue that such deals could wipe out emerging competitors in fast-moving industries such as AI.
Run:AI is about software optimization for AI infrastructure. The acquisition is followed by a blog post from the company announcing plans to open-source its software to have wider compatibility across the entire AI ecosystem. The software only works for Nvidia GPUs for now, but the goal is to expand its audience to other platforms to foster inclusivity in the developing AI industry.
The success of Nvidia’s efforts to avoid regulatory pitfalls demonstrates just how hard the company is pushing to boost its AI capabilities as watchdogs eye its growing role in the sector.
This article first appeared on GuruFocus.