Recently, following Nvidia's announcement of its acquisition of the Israeli workload management startup Run.ai, several civil organizations and think tanks in Europe have called for a comprehensive investigation by the European Commission into this deal. The specific amount of the acquisition has not been disclosed, but reports indicate that after four rounds of financing since its establishment in 2018, Run.ai is valued at $700 million.
Image Source Note: Image generated by AI, image licensed by Midjourney
Run.ai's core product is a central user interface and control platform that allows users to efficiently manage computing resources across various Kubernetes environments. The platform particularly emphasizes integration with third-party AI tools and frameworks, especially in GPU-accelerated container environments. Run.ai currently supports Nvidia's DGX computing platform, and Nvidia has committed to maintaining this business model post-acquisition.
However, 18 organizations, including the Open Markets Institute, have submitted a letter to the European Commission expressing concerns that this transaction could further consolidate Nvidia's market dominance in the AI industry. The letter points out that Nvidia's acquisition would enable it to create a new market barrier by integrating Run.ai's software, thereby strengthening its control over the high-performance computing chip market.
These organizations believe that the current power in the AI technology sector is highly concentrated, and this merger could exacerbate that phenomenon. Nvidia currently holds an 88% share of the global GPU market, far ahead of Intel and AMD. It uses CUDA technology to limit competitors' entry, attempting to build a closed ecosystem that enhances its market dominance.
The letter also notes that Run.ai's resource optimization services could significantly enhance Nvidia's GPU performance and reduce the computational costs of AI development, giving it a competitive advantage in the market. Nvidia is believed to be able to influence other companies' access to its GPUs by controlling Run.ai.
In response, Nvidia stated that it looks forward to welcoming Run.ai employees and plans to open-source Run.ai after the regulatory process concludes, ensuring that its services are available to everyone. However, it remains to be seen whether this commitment can effectively alleviate market concerns.
The European Commission has stated that it will make a decision on this acquisition by December 20 and will not comment further on the matter for now.
Key Points:
🌐 Organizations are calling on the EU to investigate Nvidia's acquisition of Run.ai, fearing it will further consolidate market dominance.
📊 Nvidia holds an 88% share of the global GPU market and uses CUDA to limit competition.
📅 The European Commission will make a final decision on this transaction by December 20.
