🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Nvidia needs EU approval to buy AI startup Run:ai, regulators say

Published 10/31/2024, 07:36 AM
Updated 10/31/2024, 01:21 PM
© Reuters. FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo
NVDA
-

By Foo Yun Chee

BRUSSELS (Reuters) -U.S. chipmaker Nvidia (NASDAQ:NVDA) will have to seek EU antitrust clearance for its proposed acquisition of AI startup Run:ai because it threatens competition in the markets where the companies operate, the European Commission said on Thursday.

The move by the EU antitrust enforcer may require Nvidia to offer concessions to secure its approval for the deal. Regulators on both sides of the Atlantic have recently stepped up their scrutiny of tech giants' acquisitions of start-ups on concerns they may shut down the potential rivals.

Nvidia announced the acquisition of Israeli firm Run:ai in April which will be bought for around $700 million according to a report by Tech Crunch.

Run:ai's technology allows developers and teams to manage and optimize their artificial intelligence infrastructure.

While the deal does not meet the EU turnover threshold requiring Nvidia to request EU approval, it was notified to the Italian competition agency which subsequently asked the EU watchdog to take up the case.

The Commission said it accepted the Italian request and warned of the competition risks from the deal.

"The transaction threatens to significantly affect competition in the markets where NVIDIA and Run:ai are active, which are likely to be at least European Economic Area-wide and therefore include the referring country Italy," it said in a statement.

Nvidia said it was happy to answer any questions regulators may have about Run:ai.

© Reuters. FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

"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," a Nvidia spokesperson said.

Nvidia has posted soaring profits and revenues over the past year as its processors become the gold standard in the chip industry due to their ability to power AI applications, including training models like ChatGPT.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.