Nvidia Under EU Scrutiny: Antitrust Investigation of $700M Run:ai Acquisition Could Shake Up GPU Market

The European antitrust authorities have turned their attention to Nvidia (NASDAQ: NVDA) as they investigate the company’s proposed acquisition of Run:ai, valued at $700 million. This scrutiny includes inquiries into whether Nvidia has been incentivizing its clients to purchase their graphics processing unit (GPU) software alongside their hardware—essentially bundling products in a way that could solidify their already dominant position in the market.

Currently holding a staggering 84% market share in the GPU sector, Nvidia not only outpaces competitors like Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD), but it also raises eyebrows regarding competitive practices. The EU's initiation of this investigation aims to ensure that the acquisition does not hinder competition within the industry—an important concern given the diverse applications of GPUs, from data centers and video game consoles to cryptocurrency mining.

The European Commission has issued questionnaires to Nvidia’s customers, probing into specifics about any special deals they may have received for bundled software and hardware. One key question posed to respondents asks if they have felt compelled or incentivized, possibly through discounts, to purchase Nvidia’s GPU Orchestration Software together with their hardware offerings. Additionally, participants are asked to speculate on how the acquisition could affect their own business, especially in a scenario where Nvidia might operate Run:ai as an open-source platform.

With a deadline for the preliminary review set for December 20, this investigation could significantly impact Nvidia's strategies and its relationship with customers moving forward. For stock traders, such developments are essential to monitor, as they could influence Nvidia’s market position and stock performance in the near future. As this story unfolds, keeping a close watch on both the regulatory environment and Nvidia's response will be crucial for making informed trading decisions.