EU Antitrust Regulators Investigate Nvidia's Acquisition of Run:ai

By Foo Yun Chee

BRUSSELS (Reuters) – EU antitrust regulators are inquiring with Nvidia (NASDAQ: NVDA) customers about possible discounts for purchasing the company's graphics processing unit (GPU) software alongside its hardware. This investigation is part of the scrutiny surrounding Nvidia's $700 million bid for Run:ai.

A questionnaire reviewed by Reuters focuses on Nvidia's potential practices that could solidify its already dominant stance in the GPU market, where it holds a commanding 84% share, significantly ahead of competitors like Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD).

GPUs are essential chips that break down computer tasks into smaller processes to be handled simultaneously. They are in high demand from technology firms for their data centers, video game console manufacturers, and even bitcoin miners.

The European Commission, acting as the EU's competition enforcer, has previously indicated that the acquisition may harm competition in the overlapping markets of the two companies. A preliminary review deadline has been set for December 20.

The Commission's document asked Nvidia customers:
> "Does a company that offers a bundle of GPU Orchestration Software (ETR: SOWGn) and hardware/GPU have a competitive advantage?"
> "To your knowledge, have end-users been required or induced (for example, with discounts) to purchase GPU Orchestration Software as a bundle together with software or other hardware?"

Participants were also queried about the potential impact on their business should Nvidia manage Run:ai as an open-source project.

Nvidia was not immediately available for comment.