The European Commission (EC) has given unconditional approval to Nvidia’s previously announced $700m acquisition of Run:ai Labs, a Kubernetes-based workload management and orchestration software provider. The decision follows an investigation under the European Union (EU) Merger Regulation, which concluded that the transaction poses no competition concerns within the European Economic Area (EEA).
Although Run:ai’s modest revenues fell below the EU merger notification thresholds, the acquisition was still scrutinised following a referral from Italy’s national competition authority. Leveraging its “call-in” powers under the Italian Competition Act, Italy flagged the transaction as potentially affecting competition. In response, the Commission accepted the referral on 31 October 2024, and the deal was formally notified on 15 November 2024.
EC examines potential market impact
The EC examined the merger’s potential impact on the markets for discrete graphic processing units (GPUs) used in data centres and GPU orchestration software. Nvidia’s dominance in GPUs, combined with Run:ai’s software capabilities, prompted questions over compatibility between Nvidia’s hardware and third-party software, and vice versa. The Commission found no evidence suggesting that Nvidia would restrict compatibility to gain a competitive advantage. Tools ensuring interoperability between GPUs and orchestration software are widely available, mitigating concerns over exclusionary practices. Additionally, Run:ai holds a limited market position, with multiple credible alternatives available to customers, including in-house solutions.
Given these findings, the Commission approved the acquisition without conditions, affirming that the deal would not harm competition within the EEA or Italy.
“Artificial Intelligence is expected to significantly influence many industries in Europe,” said EC Executive Vice-President for Clean, Just and Competitive Transition Teresa Ribera. “Since Nvidia is a leading producer of key hardware for AI applications used in the EU and beyond, it was important to carefully check whether its acquisition of start-up software company Run:ai may have negatively impacted competition in critical markets which are key for future competitiveness. But our market investigation confirmed to us that other software options compatible with NVIDIA’s hardware will remain available in the market.”
Based in Israel, Run:ai specialises in GPU orchestration software, which helps enterprise clients manage and optimise artificial intelligence (AI) workloads across data centres, cloud environments, and hybrid setups. Its platform, built on Kubernetes, supports various Kubernetes distributions and integrates seamlessly with third-party AI tools.
Nvidia intends to maintain Run:ai’s existing business model and continue investing in its product roadmap. The acquisition enhances Nvidia’s AI-focused portfolio, particularly through integration with its DGX Cloud platform and other AI enterprise offerings. Run:ai’s tools already work with Nvidia’s DGX, DGX SuperPOD, and AI Enterprise software, supporting enterprise-scale GPU management and large language model deployments. Through the partnership with Run:ai, Nvidia aims to deliver a unified framework for accessing GPU solutions across diverse environments. This collaboration is said to optimise GPU utilisation, simplify infrastructure management, and offer greater adaptability through an open architectural design.
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