BRUSSELS, Oct 31 (Reuters) – The European Commission announced that U.S. chipmaker Nvidia (NVDA.O) will need to obtain EU antitrust approval for its planned acquisition of AI startup Run, citing concerns that the deal could impact competition in markets where both companies operate.
This heightened scrutiny may prompt Nvidia to offer concessions to secure the EU’s approval. Both European and U.S. regulators have recently intensified their examination of tech giants acquiring startups over worries that such moves could stifle emerging competition.
The acquisition of Israeli-based Run, which Nvidia announced in April, is valued at approximately $700 million, according to TechCrunch. Runspecializes in solutions that help developers manage and optimize artificial intelligence infrastructure. Although the transaction doesn’t meet the EU’s direct revenue threshold for mandatory clearance, it was flagged by Italy’s competition authority, which then referred it to the EU watchdog.
In a statement, the Commission agreed to the Italian agency’s request, stating that the acquisition could “significantly affect competition” across the European Economic Area, particularly in Italy.
Nvidia responded by expressing willingness to cooperate with regulators’ inquiries regarding the acquisition of Run. A spokesperson stated, “Once the acquisition is complete, we plan to continue making AI accessible to every cloud and enterprise, empowering customers with the freedom to choose the systems and software solutions that best suit their needs.”
Nvidia’s revenue and profits have surged over the past year, driven by demand for its processors, which have become a core component in AI applications, including models like ChatGPT.
Source: Reuters