NVIDIA has completed its acquisition of Run:ai, a software startup based in Israel that focuses on optimising AI hardware performance. This acquisition marks a notable expansion of NVIDIA's capabilities, as the semiconductor giant is set to make Run:ai's software open source, allowing broad access to its tools—even for those using hardware not developed by NVIDIA itself. Run:ai, founded by Omri Geller and Ronen Dar in 2018, has been a collaborator with NVIDIA since 2020 and plans to grow its team while increasing the distribution of its software to a wider audience. The shift to open source software aims to enhance the optimisation of AI hardware across various platforms.
Though NVIDIA has not disclosed the official financial details of the deal, reports from an Israeli publication suggest the acquisition was valued at around $700 million. This marks NVIDIA’s second substantial investment in Israel following its previous $7 billion acquisition of Mellanox Technologies in 2020. The integration of Run:ai into NVIDIA's ecosystem is expected to bolster the company’s position in the AI hardware market, where it already holds a dominant role with its data centre chips, generating tens of billions of dollars each quarter.
NVIDIA's strategic move towards enhancing its AI solutions through this acquisition coincides with an aggressive investment strategy in the broader AI sector. The company has invested $1 billion across 50 startup funding rounds, representing an increase from the $872 million spent in 2023. This commitment highlights NVIDIA's ambition to consolidate its position as a leader in AI technologies, particularly as demand for its graphics processing units has surged following the advent of AI models like ChatGPT.
The company's considerable cash reserves, which reached $9 billion, have facilitated its investment activities, while its market capitalisation soared past $3 trillion in June, with shares rising more than 170% in 2024. Noteworthy investments include stakes in Elon Musk’s xAI and participation in funding rounds for prominent AI model providers such as OpenAI and Cohere.
NVIDIA’s expansion in the artificial intelligence space has drawn attention from antitrust regulators, especially as key industry players like Microsoft, Amazon, and Alphabet work towards developing their own custom chips. Former Federal Trade Commission chair Bill Kovacic pointed out that competition watchdogs are closely examining NVIDIA's investments for potential market exclusivity motives. In response, NVIDIA has clarified that its competitive success is based on merit, independent from its investment activities, asserting that its portfolio companies have the autonomy to make their own technological choices.
This latest acquisition and investment strategy reflect a broader trend in the AI sector, where innovations and competitive dynamics are continually evolving, shaping the future of business practices across various industries.
Source: Noah Wire Services