NVIDIA (NVDA, Financial data) has completed the $700 million purchase of Israeli AI startup Run:ai, a company focused on optimizing artificial intelligence workloads. The purchase aims to enhance Nvidia’s AI-oriented products and increase its ability to maximize GPU resource consumption in demanding computing scenarios.
The deal coincides with Nvidia’s strengthening of its current leadership in artificial intelligence technologies. Run:ai is well known for its own software, which makes virtualization and orchestration of AI workloads possible, a necessary capability for efficient GPU allocation. Nvidia wants to include this technology in its DGX Cloud system to provide business users with more options for managing artificial intelligence workload.
Earlier this month, regulatory hurdles were cleared when the European Commission decided that the merger would not hinder competition in the AI and GPU sectors and gave its approval without reservation. The U.S. Department of Justice, examining Nvidia’s impact in the artificial intelligence sector, also looked into the purchase.
As Nvidia continues to expand its portfolio of AI-based products, its acquisition approach aligns with its broader goals of controlling the AI ecosystem. These include hardware, software and cloud-based artificial intelligence systems. The financial specifics of how Nvidia plans to integrate Run:ai’s business into its broader architecture are still unknown.
The purchase is seen as a calculated move aimed at maintaining Nvidia’s competitive advantage as demand for artificial intelligence technology increases across several industries.
This article first appeared on GuruFocus.