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EU to Decide on Nvidia’s Acquisition of Israeli AI Startup Run:ai by December 20

By  |  November 19, 2024

The European Union (EU)’s antitrust regulators are expected to reach a decision regarding Nvidia’s proposed acquisition of Israeli artificial intelligence (AI) startup Run:ai by December 20, according to a filing by the European Commission.

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    The deal, announced in April, has raised concerns within the EU competition authority. The Commission warned last month that the acquisition could harm competition in the markets where both companies operate. As a result, Nvidia has been instructed to seek approval from the EU before finalizing the $700 million transaction, which was first reported by Tech Crunch.

    Under EU antitrust rules, the Commission has several options. It can either clear the deal outright or with conditions during its preliminary review. If regulators have significant concerns, they could initiate a more in-depth investigation, which could last up to four months.

    Read more: Supreme Court Deliberates on Nvidia’s Bid to Halt Investor Lawsuit Over Cryptocurrency

    The review comes amid growing scrutiny over so-called “killer acquisitions,” where large companies purchase smaller startups with the aim of shutting them down or stifling their competitive potential. This has been a key area of focus for antitrust regulators in both Europe and the United States in recent years.

    Nvidia, known for its powerful graphics processors used in AI applications, including training models like ChatGPT, is a dominant player in the chip industry. The company’s acquisition of Run:ai, a startup specializing in AI-driven infrastructure, is seen as a strategic move to bolster its position in the AI market.

    According to Reuters, the European Commission’s assessment of the deal is a critical moment for Nvidia, as the company seeks to expand its reach in the growing AI sector.

    Source: Reuters