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Nvidia (NASDAQ:NVDA) just pulled off another power move, closing its $700 million acquisition of Israeli AI startup Run:ai after clearing a gauntlet of regulatory scrutiny. The deal, which got the green light from the European Commission earlier this month, cements Nvidia's chokehold on the AI graphics processing unit (GPU) market, where it already owns a whopping 80% share. While the U.S. Department of Justice is still keeping a watchful eye, the EU found no competition red flags. This is another win for Nvidia as it keeps snapping up the best tech to fuel the booming AI revolution.
What's the big deal with Run:ai? The startup's software helps AI developers squeeze maximum performance out of their hardware, currently optimized for Nvidia systems. But here's the twist: Run:ai plans to go open-source, meaning its tools could work across the entire AI ecosystemincluding with Nvidia's competitors. That's a bold move, but one that could position Nvidia as the indispensable backbone of AI infrastructure, no matter whose chips are in the machine. While Run:ai currently supports only Nvidia GPUs, open sourcing the software will enable it to extend its availability to the entire AI ecosystem, Run:ai said, doubling down on its mission to dominate the AI optimization space.
For Nvidia, this isn't just another box tickedit's a leap forward in its grand AI strategy. Fresh off record-breaking AI chip sales, the company continues to shape the future of AI computing with blockbuster acquisitions. Run:ai joins Nvidia's Israel portfolio, which already includes the $7 billion Mellanox deal from 2020. Founded in 2018, Run:ai has been a trusted Nvidia partner for years, and now they're officially on the team. Investors, take note: Nvidia isn't just riding the AI wave; it's building the surfboard, the ocean, and the entire ecosystem.
This article first appeared on GuruFocus.