The Italian competition watchdog requested the investigation for fear the acquisition will affect trade in the single market.
The European Commission is set to assess Nvidia’s proposed acquisition of the start-up Run:ai because of concerns that it may pose competition risks.
The chip giant announced the plan to acquire the Israeli start-up Run:ai in April. Run:ai provides an open platform for enterprise customers to manage and optimise their artificial intelligence (AI) compute infrastructure, whether on premises, in the cloud or in hybrid environments.
At the time, Nividia said that the joining of the companies’ technology would “support a broad ecosystem of third-party solutions, giving customers choice and flexibility”.
According to the EU, the proposed acquisition of Run:ai does not reach the notification thresholds set out in the EU Merger Regulation (EUMR).
It was originally notified in Italy, as required by the Italian Competition Act, which enables the Italian competition authority to review transactions not meeting national turnover thresholds when it finds they pose concrete risks for competition and other conditions.
The main concern comes from fears that the transaction may negatively affect competition in the markets where Nvidia and Run:ai are active, which are likely to be in the European Economic Area (and therefore include the referring country Italy).
The European Commission accepted that the transaction meets the criteria to assess the acquisition under Article 22 of the EUMR. The Commission also concluded that it is “best placed” to examine the transaction given its “knowledge and case experience in related markets”.
Nvidia cannot now implement the transaction before notifying and obtaining clearance from the Commission.
In July, Nvidia faced scrutiny after it was reported that French regulators were reportedly preparing to charge the company for breaking competition laws in the country.
In August, the US Department of Justice announced that it is investigating complaints made against the company by its competitors, in which they alleged that the AI chipmaker is actively stifling competition in the chips market.
Back in 2022, Nvidia cancelled its planned $40bn acquisition of UK chip designer Arm, which is owned by Softbank Group, citing “significant regulatory challenges” from both sides of the Atlantic.
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