Nvidia to Acquire Run:AI for $700 Million to Boost AI Efficiency

  • Editor
  • May 7, 2024

In a significant expansion of its Artificial Intelligence portfolio, Nvidia, a leader in AI technology, has announced plans to acquire Run:ai, a startup renowned for enhancing AI chip efficiency.

This deal, worth approximately $700 million, marks a continued effort by Nvidia to assert its dominance across the AI technology stack.

Run:ai, founded in 2018 by Omri Geller and Ronen Dar, specializes in Kubernetes-based software that optimizes artificial intelligence applications and workloads on graphics processing units (GPUs).

Their software provides a critical orchestration and virtualization layer tailored for AI workloads, enabling better management of compute infrastructure whether in the cloud, on-premises, or in hybrid environments.

Alexis Bjorlin, Vice President and General Manager for Nvidia DGX Cloud, emphasized the strategic value of this acquisition in a recent blog post. She highlighted that Run:ai’s platform allows developers to efficiently manage and optimize GPU utilization across various computing tasks, from partial to full GPU usage distributed across multiple clusters.

The acquisition is poised to benefit Nvidia’s extensive customer base, including high-profile clients like Sony, Adobe, and BNY Mellon. This is what tech enthusiasts say about this acquisition,

According to Bjorlin, integrating Run:ai’s capabilities with Nvidia’s existing offerings, such as the DGX systems and DGX Cloud, will provide customers a “single fabric” that enhances access to GPU resources across different deployment environments.

Rona Segev, co-founder and managing partner at TLV Partners, an early investor in Run:ai, spoke to VentureBeat about the critical nature of the technology developed by Run:ai. Segev explained,

When dealing with large clusters of computers, having an effective virtualization and management layer is essential to maximize the value from hardware investments.

She also mentioned how Run:ai’s technology can dynamically allocate and manage GPU resources, which is crucial for scaling AI applications efficiently. This acquisition adds to Nvidia’s already impressive repertoire of strategic purchases and investments aimed at consolidating its market position.

Notably, the company acquired Mellanox in 2019 for $6.9 billion and has since made several other acquisitions, including OmniML and SwiftStack, enhancing its capabilities across various aspects of AI and cloud computing.

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However, Nvidia’s aggressive expansion strategy has not gone unnoticed by regulators. The company faced significant regulatory challenges in 2022, notably with its attempted acquisition of British chip designer Arm for $40 billion, which was ultimately terminated.

As Nvidia continues to expand its footprint in the AI industry, this latest acquisition of Run:ai not only strengthens its product offerings but also reaffirms its commitment to driving innovation in AI technology and infrastructure management.

Found this interesting? Visit allaboutai.com for more daily exciting AI News like this.

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Dave Andre


Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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