The European Commission gave its unconditional approval to Nvidia’s (NVDA) $700 million bid to acquire Run:ai. The decision follows a detailed antitrust probe by the European Commission, which examined whether the deal could give Nvidia undue control over Graphic Processing Units (GPUs). GPUs are Nvidia’s essential chips that process and divide complex computing tasks.
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EU Probe Finds No Competition Risks
The EU’s investigation primarily focused on the potential impact on competition within the GPU market. However, the Commission concluded that the acquisition would not pose any significant concerns. Teresa Ribera, the EU’s newly appointed antitrust chief commented, “Our market investigation confirmed to us that other software options compatible with Nvidia’s hardware will remain available in the market.”
Run:ai Acquisition Is a Strategic Move for Nvidia
While Nvidia has not disclosed the terms of the deal, according to a Bloomberg report, citing Israeli newspaper Calcalist, the acquisition is estimated to be valued at $700 million. The acquisition of Run:ai, an Israel-based company specializing in AI-driven workload orchestration software, aligns with Nvidia’s broader strategy to strengthen its position in the artificial intelligence ecosystem.
By integrating Run:ai’s innovative software solutions, Nvidia aims to enhance its hardware capabilities, particularly in data centers and AI workloads. However, the EU’s approval ensures that alternative software options compatible with Nvidia’s GPUs will remain accessible, preserving competition within the sector.
Is Nvidia a Buy, Sell, or Hold?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds. Over the past year, NVDA has soared by more than 100%, and the average NVDA price target of $177.14 implies an upside potential of 35.4% from current levels.
