Chipmaker Nvidia announced on Monday that the company completed the acquisition of Israeli artificial intelligence startup Run:ai. The deal, which was first announced back in April, is valued at $700 million.
The initial agreement between Nvidia and Run:ai attracted the attention of the European Commission, which launched a probe due to concerns it would stifle the competition. The major issue was that Nvidia already has significant control over the AI sector, holding between 70% and 95% of the market for AI chips.
The EU regulators completed the investigation in December and concluded that the deal doesn’t have anticompetitive consequences, giving it unconditional approval.
“We’re delighted to welcome the Run:ai team to Nvidia,” Nvidia said in a statement.
Run:ai, which was founded in 2018, specializes in creating software for optimizing and orchestrating GPU compute resources for artificial intelligence. It currently only supports Nvidia’s GPUs but signaled an intention to make it open source.
“We plan to open source the Run:ai software to help the community build better AI, faster. 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 in a statement shared on their website.
Nvidia’s stock reacted positively to the deal, jumping by 1% on Monday for a $138.50 per share close. The stock is currently 187.52% up year-to-date.