Nvidia Completes Acquisition of Israeli AI Startup Run:ai: Deal valued at $600 million

Nvidia has officially completed its acquisition of Run:ai, an Israeli startup specializing in artificial intelligence (AI) software, after months of regulatory reviews. While the terms of the deal were not disclosed, it was initially valued at around $600 million, plus $100 million in retention bonuses for Run:ai employees. With the acquisition now finalized, 100 Run:ai employees will join Nvidia’s team, bolstering the company's ongoing expansion in Israel.

The acquisition, first announced in April 2024, was delayed for several months due to regulatory scrutiny in both the United States and the European Union. Concerns over Nvidia’s dominance in the AI chip market and its potential to stifle competition led to investigations by the U.S. Department of Justice and the European antitrust regulators. In August 2024, the U.S. launched an antitrust probe into the deal, followed by a similar investigation by the EU. However, after extended reviews, the deal received EU approval and now appears to have cleared the regulatory hurdles in the U.S. as well.

Run:ai's Role in Nvidia’s AI Strategy

Run: AI’s AI software is designed to optimize and accelerate the use of graphics processing units (GPUs) for AI applications, providing companies with tools to reduce cloud computing costs and handle more AI tasks simultaneously, maximizing the performance of existing hardware. Nvidia has emphasized that Run:ai’s product will remain available as a stand-alone product after the acquisition. Additionally, Nvidia will make Run:ai's software open-source, allowing it to work with non-Nvidia processors in the future. Currently, the product is limited to Nvidia GPUs, but this open-source move is expected to broaden its use across the industry.

Nvidia's decision to open-source Run:ai’s technology is seen as a key factor in addressing regulatory concerns and facilitating the deal’s approval. It marks a significant step in Nvidia’s efforts to build a more open and expansive AI ecosystem, one that goes beyond its hardware.

Continued Expansion in Israel

The acquisition underscores Nvidia’s growing presence in Israel, a country known for its vibrant tech ecosystem. Earlier this year, Nvidia also acquired Desi, another Israeli AI startup, as part of its strategy to strengthen its AI capabilities. The integration of Run:ai into Nvidia’s enterprise software services platform will allow the company to offer even more advanced AI solutions to its customers, particularly in the enterprise and cloud computing sectors.

Statements from Run: AI’s Leadership

Omri Geller, CEO and co-founder of Run: ai, and Dr. Ronen Dar, CTO and co-founder, issued a joint statement following the deal’s completion:

“Today, we conclude an extraordinary chapter in the journey of Run:ai, and are pleased to begin a new and exciting chapter by officially joining NVIDIA. While our brand colors change — from pink to green — our commitment to our customers, our partners, and the AI ecosystem remains the same. We plan to open-source the software platform we developed at Run:ai, thereby helping the community build better AI capabilities — faster. Currently, Run:ai only supports NVIDIA GPUs, but launching the product as open-source will allow us to expand its availability and capabilities to the entire industry.”

The Future of AI and Nvidia’s Growth

The acquisition of Run:ai represents a key milestone in Nvidia's efforts to strengthen its leadership position in the AI market. With AI increasingly playing a pivotal role in industries ranging from cloud computing to autonomous vehicles, Nvidia’s growing portfolio of AI-related acquisitions positions the company to continue its dominance in the space.

As the AI sector continues to expand rapidly, Nvidia’s investment in AI software, infrastructure, and talent — particularly through acquisitions like Run:ai — will be instrumental in ensuring the company remains at the forefront of AI innovation.

About Nvidia and Run:ai

Nvidia is a global leader in AI hardware and software, particularly known for its GPUs, which are widely used in AI and machine learning applications. In recent years, the company has also expanded into AI software and cloud solutions, making strategic acquisitions in the sector.

Run:ai, founded in 2018, developed software to optimize AI workloads on GPUs. The company’s platform has become increasingly popular among enterprises looking to streamline their AI operations and improve hardware utilization.

As Nvidia continues to expand its capabilities, this acquisition is poised to play a pivotal role in shaping the future of AI-driven technologies across industries.