Nvidia must get EU approval before it can buy AI startup, Run:ai.

The European Commission announced on Thursday that the proposed acquisition by Nvidia of AI startup Run:ai, which threatens the competition in the markets the companies operate in, will require EU antitrust clearance because it poses a threat to the competition.

Nvidia may be required to make concessions in order to get the EU's approval. Recently, regulators on both sides have increased their scrutiny over tech deals.

Nvidia acquired the Israeli company in April for $700 million, according to Tech Crunch.

The technology of Run:ai allows teams and developers to optimize and manage their artificial intelligence infrastructure.

The deal did not meet the EU threshold for approval by the EU, but it was reported to the Italian Competition Agency which then notified the EU watchdog.

The Commission accepted the Italian request but warned about the potential competition risks of the deal.

The statement said that the transaction "threatens to have a significant impact on competition in markets where NVIDIA, Run:ai and other companies are active. These are likely to include at least the European Economic Area and the referring country Italy."

Nvidia's profits and revenue have soared over the last year, as its processors are now the industry standard for AI applications. This includes training models such as ChatGPT. (Reporting and editing by Foo Yunchee; Editing by Sudip Kara-Gupta, Editing by Elaine Hardcastle).

(source: Reuters)