European Commission Approves Nvidia's Acquisition of Run:ai, Clearing Path for AI Hardware-Software Integration

Europa-Commission approves acquisition of Run: ai by NVIDIA

The Commission concluded that the transaction would raise no competition concerns in the European Economic Area ('EEA'). The transaction does not reach the notification thresholds set out in the EUMR as Run:ai's current revenues are negligible. It was notified in , as required by the Italian Competition Act, upon request by the national competition authority, which used its 'call-in' powers. Such powers enable the Italian authority to review transactions not meeting the relevant national turnover thresholds where it finds that a transaction may pose concrete risks for competition and the other conditions laid down in the Italian Competition Act are met. submitted a referral request to the Commission pursuant to Article 22(1) of the EUMR. This provision allows Member States to request the Commission to examine a merger that does not have an EU dimension but affects trade within the Single Market and threatens to significantly affect competition within the territory of the Member State(s) making the request. On , the Commission's accepted request and the transaction was notified to the Commission on . The Commission's investigation NVIDIA designs and supplies Graphic Processing Units ('GPUs'), a type of semiconductor for datacentre applications. Run:ai supplies GPU orchestration software allowing corporate customers to schedule, manage and optimise their artificial intelligence compute infrastructure, whether on premises, in the cloud or in hybrid environments. The Commission investigated the impact of the transaction on the markets for the supply of (i) discrete GPUs for use in datacentres; and (ii) GPU orchestration software. The activities of NVIDIA and Run:ai do not overlap, but GPUs and GPU orchestration software must be compatible. The Commission assessed whether, post-transaction, NVIDIA would be able to hamper the compatibility between its GPUs and the GPU orchestration software of Run:ai's competitors, and the compatibility between Run:ai's software and the GPUs of NVIDIA's competitors. Based on its market investigation, the Commission found that: NVIDIA likely holds a dominant position in the global market for discrete GPUs for use in datacentres. However, NVIDIA will have neither the technical ability nor the incentive to hamper the compatibility of its GPUs with competing GPU orchestration software due to the availability and widespread use of tools that ensure such compatibility, a point that has been confirmed by Run:ai's competitors. Run:ai does not have a significant position on the market for GPU orchestration software today. Customers will continue to have access to sufficient credible alternatives to Run:ai with similar advanced software features, as well as the possibility of building their GPU orchestration software in-house. The Commission therefore concluded that the proposed acquisition would not raise competition concerns on any of the markets examined in the EEA or in . It therefore cleared the transaction unconditionally. Companies and products NVIDIA, headquartered in the US, designs and supplies accelerated computing platforms including GPUs for datacentres, gaming, professional visualization, and automotive applications. NVIDIA also supplies network interconnect products and solutions. NVIDIA is listed on the NASDAQ. Run:ai, headquartered in , is a private start-up company that makes GPU orchestration software that helps customers schedule workloads on clusters of GPUs for use in datacentres. Merger control and procedure The transaction was notified to the Commission on following a referral request pursuant to Article 22(1) of the EUMR by the Italian national competition authority on , which the Commission accepted on . The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EUMR) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it. The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). More information will be available on the Commission's competition website, in the Commission's public case register under the case number M.11766.

EU Approves Nvidia's Run : ai Takeover -- 2nd Update

BRUSSELS--The European Commission approved artificial intelligence behemoth Nvidia's takeover of Israeli streamlining provider Run:ai Friday, clearing a key regulatory hurdle for the deal. The Commission cleared the deal without conditions, saying it didn't raise competition concerns. Nvidia wouldn't have the ability or incentive to hamper the compatibility of its coveted graphic processing units with rivals' software, it said. The European Union's merger watchdog had set a Dec. 20 deadline to decide whether to give the companies a green light or launch a full investigation. Chip maker Nvidia has come under increased scrutiny this year from antitrust enforcers worldwide that are eager to prevent a handful of incumbent tech giants dominating the nascent technology and squeezing out future rivals. The EU regulator said it looked into whether the deal would have an impact on the supply of so-called discrete GPUs used in datacentres; and the market for GPU orchestration software. It said that Run:ai does not currently have a significant position in orchestration software. Customers can still have access to the company's competitors that provide similar services, it said, or could build their own software in-house. "Since NVIDIA is a leading producer of key hardware for AI applications used in the EU and beyond, it was important to carefully check whether its acquisition of start-up software company Run:ai may have negatively impacted competition in critical markets which are key for future competitiveness," Competition Commissioner Teresa Ribera said, adding that the probe confirmed other options will remain on the market. Nvidia's Run:ai deal, announced in April, came under the EU's radar after Italian regulators referred it to the commission under a legal tool that European regulators are using to look at so-called killer acquisitions that fall below typical merger probe thresholds. The commission's use of that tool, so-called Article 22, has faced criticism from lawyers and company executives in the past who say it adds to regulatory uncertainty. The watchdog also lost a high profile court battle over its decision to investigate--and later veto--biotech firm Illumina's re-acquisition of startup Grail in September this year by using the provision. "This case, referred by Italy, highlights the importance of Member State referrals in enabling the Commission to continue to check potentially problematic transactions," Ribera said. Nvidia said on Friday that it looks forward to welcoming the Run:ai team to the fold.

EU Approves Nvidia's Run : ai Takeover -- Update

BRUSSELS--The European Commission approved artificial intelligence behemoth Nvidia's takeover of Israeli streamlining provider Run:ai Friday, clearing a key regulatory hurdle for the deal. The Commission cleared the deal without conditions, saying it didn't raise competition concerns. Nvidia wouldn't have the ability or incentive to hamper the compatibility of its coveted graphic processing units with rivals' software, it said. The European Union's merger watchdog had set a Dec. 20 deadline to decide whether to give the companies a green light or launch a full investigation. Chip maker Nvidia has come under increased scrutiny this year from antitrust enforcers worldwide that are eager to prevent a handful of incumbent tech giants dominating the nascent technology and squeezing out future rivals. Nvidia's Run:ai deal, announced in April, came under the EU's radar after Italian regulators referred it to the commission under a legal tool that European regulators are using to look at so-called killer acquisitions that fall below typical merger probe thresholds. The EU regulator said it looked into whether the deal would have an impact on the supply of so-called discrete GPUs used in datacentres; and the market for GPU orchestration software. It said that Run:ai does not currently have a significant position in orchestration software. Customers can still have access to the company's competitors that provide similar services, it said, or could build their own software in-house. Nvidia said on Friday that it looks forward to welcoming the Run:ai team to the fold.

European Commission Approves Nvidia's Proposed Acquisition of Run:ai | PYMNTS.com

The European Commission approved Nvidia's proposed acquisition of Run:ai Thursday (Dec. 19), saying that it did so unconditionally and that the transaction would raise no competition concerns in the European Economic Area (EEA). The case had been referred to the Commission in September by the Italian competition authority, which asked the Commission to determine whether the proposed acquisition would affect competition in the EEA, the Commission said in a Thursday press release. Nvidia designs and supplies graphic processing units (GPUs) for data center applications, while Run:ai supplies GPU orchestration software that enables corporate clients to manage their AI compute infrastructure, according to the release. The Commission determined that the proposed acquisition would not raise competition concerns because Nvidia cannot hamper the compatibility of its GPUs with competing GPU orchestration software and because customers have access to other GPU orchestration software that offers alternatives to Run:ai, per the release. "Since Nvidia is a leading producer of key hardware for AI applications used in the EU and beyond, it was important to carefully check whether its acquisition of start-up software company Run:ai may have negatively impacted competition in critical markets which are key for future competitiveness," Teresa Ribera, executive vice-president for clean, just and competitive transition at the European Commission, said in the release. "But our market investigation confirmed to us that other software options compatible with Nvidia's hardware will remain available in the market." When announcing its plans to acquire Run:ai in April, Nvidia said the deal will help customers make more efficient use of their AI computing resources. "Run:ai enables enterprise customers to manage and optimize their compute infrastructure, whether on premises, in the cloud or in hybrid environments," Nvidia said in an April 24 blog post. Run:ai Co-Founder and CEO Omri Geller said in the post that the company has collaborated with Nvidia since 2020 and that both companies "share a passion for helping our customers make the most of their infrastructure." The European Commission announced in October that Nvidia would need to obtain antitrust clearance for the proposed acquisition, saying there were concerns that the deal could undermine competition within the sectors both companies operate in.

Nvidia's acquisition of Run:ai Cleared by the European Commission By Investing.com

Investing.com -- The European Commission has given its approval to Nvidia (NASDAQ:NVDA)'s acquisition of Israeli firm Run:ai, removing a significant regulatory obstacle for the deal. The Commission concluded on Friday that the acquisition would not pose a threat to competition. The Commission's decision was based on the fact that Nvidia, a leading artificial intelligence company, would not have the ability or incentive to disrupt the compatibility of its sought-after graphic processing units (GPUs) with the software of its competitors. The European Union's merger watchdog had set a deadline of December 20 to determine whether to approve the deal or initiate a comprehensive investigation. Nvidia, a major chip manufacturer, has been under increased scrutiny this year from global antitrust regulators who are keen to prevent a small number of existing tech giants from dominating emerging technology and stifling potential competitors. Nvidia's deal with Run:ai, which was announced in April, came to the attention of the EU after Italian regulators referred it to the Commission. This referral was made using a legal tool that European regulators are employing to examine so-called killer acquisitions that fall below the usual thresholds for merger investigations. The EU regulator investigated whether the deal would affect the supply of discrete GPUs used in data centers and the market for GPU orchestration software. The regulator found that Run:ai does not currently hold a significant position in the orchestration software market. The regulator also noted that customers would still be able to access the services of Run:ai's competitors or develop their own software in-house.

EU Approves Nvidia's Run : ai Takeover

BRUSSELS--The European Commission approved artificial intelligence behemoth Nvidia's takeover of Israeli streamlining provider Run:ai Friday, clearing a key regulatory hurdle for the deal. The Commission cleared the deal without conditions, saying it didn't raise competition concerns. Nvidia wouldn't have the ability or incentive to hamper the compatibility of its coveted graphic processing units with rivals' software, it said. The European Union's merger watchdog had set a Dec. 20 deadline to decide whether to give the companies a green light or launch a full investigation. Chip maker Nvidia has come under increased scrutiny this year from antitrust enforcers worldwide that are eager to prevent a handful of incumbent tech giants dominating the nascent technology and squeezing out future rivals. Nvidia's Run:ai deal, announced in April, came under the EU's radar after Italian regulators referred it to the commission under a legal tool that European regulators are using to look at so-called killer acquisitions that fall below typical merger probe thresholds.

Nvidia's Run:ai Acquisition Gets Approved By EU Regulator

The European Commission has 'unconditionally' approved Nvidia's $700 million acquisition of GPU orchestration software startup Run:ai, which the company plans to use to boost its AI computing business, including the DGX Cloud platform. The European Union's antitrust regulator has "unconditionally" approved Nvidia's acquisition of AI infrastructure management startup Run:ai. The European Commission issued the decision Friday after launching an investigation in late October into the potential anti-competitive implications of Nvidia's Run:ai deal, which the company announced in April to boost its AI computing business, including DGX Cloud. [Related: The 10 Biggest Nvidia News Stories Of 2024] "The Commission concluded that the transaction would raise no competition concerns in the European Economic Area," the regulator said, adding that Run:ai's "current revenues are negligible" and, as such, don't reach the notification threshold for European Union merger rules. The move was celebrated by Nvidia. "We look forward to welcoming the talented Run:ai team to Nvidia," a company spokesperson said in a statement to CRN. Run:ai provides Kubernetes-based workload management and orchestration software for GPU-accelerated systems, which allows enterprise customers to "manage and optimize their compute infrastructure, whether on-premises, in the cloud or in hybrid environments," according to a previous statement from Nvidia executive Alexis Bjorlin. The European Commission said its investigation centered around whether Nvidia could use the acquisition, which was reportedly valued at $700 million, to "hamper the compatibility between its GPUs and the GPU orchestration software of Run:ai's competitors, and the compatibility between Run:ai's software and the GPUs of Nvidia's competitors." The regulator found that both outcomes weren't likely to happen, despite Nvidia's dominance in the AI computing market. "Nvidia will have neither the technical ability nor the incentive to hamper the compatibility of its GPUs with competing GPU orchestration software due to the availability and widespread use of tools that ensure such compatibility, a point that has been confirmed by Run:ai's competitors," the European Commission said. Noting that Run:ai "does not have a significant position on the market for GPU orchestration software today," the agency added that "customers will continue to have access to sufficient credible alternatives to Run:ai with similar advanced software features, as well as the possibility of building their GPU orchestration software in-house." When Nvidia announced the Run:ai acquisition, it said it would "continue to offer Run:ai's products under the same business model for the immediate future" and invest in the business' product road map, including enabling the software on the DGX Cloud platform. The AI computing giant said customers using Nvidia HGX and DGX systems as well as DGX Cloud will "[have] access to Run:ai's capabilities for their AI workloads." At the same time, the company said Nvidia and Run:ai will "continue to support a broad ecosystem of third-party solutions."

Nvidia clears regulatory hurdle to acquire Run:ai | TechCrunch

Chip company Nvidia gets the green light from the European Union to complete its acquisition of Run:ai. The EU came to a unanimous decision today that Nvidia could go ahead with its acquisition of Israeli GPU orchestration platform Run:ai, according to reporting from Bloomberg. The European Commission determined that if the merger went through other hardware options compatible with Nvidia would still be available on the market and thus this company combination would not create a monopoly. Despite the EU approval, though, the deal is still being held up by the Department of Justice in the U.S. and it's unclear when/if it will be approved. Still, this is likely welcome news to other AI startups with acquisition and acquihire aspirations, as it shows consolidation is welcome in the AI market -- at least for now. While the deal terms weren't disclosed, the purchase price is estimated to be around $700 million, according to Bloomberg's reporting that cites local Israeli media. The deal was originally announced in April.

Nvidia's Deal to Buy Israel's Run:ai Wins Unconditional EU Nod

Nvidia Corp. won unconditional European Union approval to buy Israeli startup Run:ai, which develops software for handling artificial intelligence computing resources. The European Commission said in a statement on Friday that the takeover didn't pose any competition threats across the 27-member bloc despite Nvidia's position as a "leading producer of key hardware for AI applications used in the EU and beyond."

Nvidia Secures EU Approval For Run:ai Deal, US Probes China Export Breach - NVIDIA (NASDAQ:NVDA)

Investigation finds no significant competition risks in GPUs or software. The European Commission granted unconditional approval Thursday for Nvidia Corp NVDA to acquire Run:ai Labs Ltd, an Israel-based provider of GPU orchestration software. The decision under the EU Merger Regulation concluded the acquisition would not raise competition concerns within the European Economic Area. Nvidia, a U.S.-based leader in GPU technology for data centers, gaming and automotive applications, aims to integrate Run: ai's software into its ecosystem. Run:ai specializes in software that helps organizations optimize and manage their artificial intelligence compute workloads across various environments, including on-premises and cloud platforms. The commission's investigation focused on whether the merger could harm competition in two critical markets: discrete GPUs for data centers and GPU orchestration software. Although Nvidia holds a dominant position in the global market for data center GPUs, the inquiry determined the company lacks the technical ability and motivation to limit compatibility between its GPUs and competing software solutions. Similarly, Run:ai does not command a significant market share in GPU orchestration software, ensuring continued access to alternative providers for customers. Super Micro Computer Inc SMCI and Dell Technologies Inc DELL server products embedded Nvidia AI chips. Some customers replicated serial numbers of the servers containing Nvidia chips purchased from Super Micro and attached them to other servers. Also, smugglers altered the serial numbers in the server operating system. Dell and Super Micro said they complied with the regulatory norms. U.S. Big Tech giants have drawn intense regulatory scrutiny for allegedly trying to stifle fair competition by exploiting their influence. In 2024, U.S. regulatory bodies, including the Department of Justice's antitrust division, reviewed Nvidia's potential dominance within the AI chip sector. The Federal Trade Commission was also examining investments by the Big Tech giants. Nvidia's plans to purchase British chip designer Arm Holdings plc ARM succumbed to global regulatory opposition. Other significant acquisitions that failed to win regulatory approval included Broadcom Inc's AVGO plans to acquire Qualcomm Inc QCOM. Meanwhile, the U.S. Department of Commerce urged Nvidia to investigate how the company's products reached China by flouting the semiconductor embargo, Reuters reported, citing The Information. The Biden Administration slapped semiconductor sanctions on China by restricting its access to advanced artificial intelligence technology chips and equipment meant to produce the chips. Nvidia urged leading distributors like Super Micro Computer and Dell to conduct spot checks of Southeast Asian customers. Nvidia stock surged over 171% year-to-date. Investors can gain exposure to the stock through VanEck Semiconductor ETF SMH and Fidelity MSCI Information Technology Index ETF FTEC. NVDA Price Action: Nvidia stock is up 1.74% at $132.95 at publication Friday. Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

Nvidia Ends Down Stretch With Positive News From EU Regulators

The AI tech giant received some good news to close its week, as European regulators cleared the company's acquisition of Israeli software company Run:AI Labs. Nvidia (NVDA) shares slowed their recent slide into technical-correction territory Friday, with the tech giant receiving positive news from European regulators who cleared its recent acquisition of competition concerns. Shares of the artificial intelligence (AI) chip powerhouse have declined in nine of the last 11 trading sessions entering Friday since closing at $145.14 on Dec. 4, but jumped about 2.5% higher Friday afternoon. Shares were down about 10% over that period entering Friday, and about 12% from their last record close of $148.88 in early November. Nvidia received some positive news ahead of the Christmas holiday as the European Commission, the executive arm of the European Union (EU), on Friday cleared Nvidia's acquisition of Israeli software maker Run:AI Labs. The regulators said their review found that the acquisition won't have any negative competitive impacts, with competing software still available to be used with Nvidia products, as Run:AI isn't a dominant player in that market. Announcing the acquisition in April, Nvidia said it has been a "close collaborator" with Run:AI since 2020, and said the takeover would help customers use their products more efficiently. The sides did not announce financial terms of the deal, but reports have put a price tag of about $700 million on the deal, according to Bloomberg.