Nvidia, a giant AI chipmaker, has reportedly finalized its acquisition of Run:ai, an Israeli AI startup specializing in software that optimizes hardware for Artificial Intelligence.
Sources reveal that Nvidia completed the deal for approximately $700 million, with the merger officially concluded on December 30, 2024.
Run:ai, which primarily served Nvidia by managing GPU resources for Al in the cloud, announced that its software will now be open-sourced following the acquisition. This move will allow competitors such as AMD and Intel to adapt the software for their hardware, extending its reach across the Al ecosystem.
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“We are eager to build on the achievements we’ve obtained until now, expand our talented team, and grow our product and market reach,” Run:ai stated in a release.
Recall that Nvidia had announced its intent to acquire Run:ai in April last year, but the deal ran into regulatory hurdles. The European Commission and the U.S. Department of Justice launched separate investigations into whether Nvidia’s purchase would harm competition.
On December 20, 2024, a Bloomberg report revealed that Nvidia won unconditional European Union approval to go ahead with the acquisition of the Israeli AI startup. The EU via a statement disclosed 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 Al applications used in the EU and beyond.
Nvidia has not officially addressed why it decided to open-source Run:ai’s software, but industry analysts believe this strategy could mitigate antitrust concerns. Open-sourcing Run:ai’s software could help Nvidia counter concerns about monopolistic practices while fostering innovation across the broader Al ecosystem. A Nvidia spokesperson expressed excitement about the merger, saying, “We’re excited to welcome the Run:ai team to Nvidia. Open-sourcing the software will enable it to extend its availability to the entire Al ecosystem.”
The acquisition integrates Run:ai into Nvidia’s Israeli operations, which include approximately 4,000 employees across seven R&D centers. Run:al’s expertise is expected to enhance Nvidia’s capabilities in optimizing Al workloads, providing the company with a competitive edge in the Al hardware and software market.
By combining the accelerated computing power from NVIDIA with the dynamic Al workload orchestration of the Run:ai Atlas platform, financial services organizations can successfully deliver on their Al initiatives.
Run: ai’s workload-aware orchestration ensures that build, training, and inference jobs get the right amount of resources when needed, and provides deep integrations into NVIDIA GPUs to allow optimal utilization of these resources.
Notably, Nvidia’s acquisition of Run:ai comes after it unveiled a new generation of compact computers for humanoid robots, called “Jetson Thor”, as it is set to make significant strides in the robotics sector. As the robotics sector becomes a key driver of technological evolution, NVIDIA’s entry comes at a critical juncture. The company faces increasing competition for its powerful Al chips from rivals like AMD, while cloud computing giants such as Amazon, Microsoft, and Google seek to reduce reliance on NVIDIA by developing alternative Semiconductor solutions.
The acquisition of Run:ai and the expansion into robotics not only reinforces Nvidia’s leadership in AI technology, but also reflects its commitment to expanding accessibility and fostering innovation within the global AI ecosystem.