In recent news, Nvidia, the renowned chip manufacturer, has been authorized by the European Union to pursue its takeover of Run:ai.

Today, the EU unanimously agreed that Nvidia is clear to proceed with its planned acquisition of the Israeli GPU orchestration platform, Run:ai, based on Bloomberg’s reports. The European Commission’s decision was guided by the understanding that even after the merger, other hardware options compatible with Nvidia would remain available in the market. Hence, this corporate amalgamation wouldn’t lead to a monopoly scenario.

However, despite the EU’s nod of approval, the deal is currently facing obstacles from the U.S. Department of Justice, leaving its status of approval in the States uncertain.

Regardless, this development may serve as encouraging news for other AI startups looking for acquisition opportunities or ‘acqui-hires’, indicating that the AI market is open for consolidation – at least for the time being.

While the specifics of the deal remain undisclosed, the acquisition cost is speculated to be in the ballpark of $700 million, as suggested by Bloomberg’s report citing local Israeli media. The initial announcement of the deal was made in April.