Nvidia shells out $700m to scoop up Israeli AI startup

Nvidia CEO Jensen Huang / Photo credit: Shutterstock

Nvidia is set to acquire Israel-based AI startup Run:ai, the US chipmaker said in a statement. While Nvidia didn’t disclose the acquisition’s value, Israeli outlet Calcalist pegs the number at around US$700 million.

Run:ai develops software to help businesses manage their computing needs more effectively. It runs on Kubernetes, an open-source system designed by Google that automates software deployment, scaling, and management.

In a statement, Nvidia noted the “increasingly complex” customer AI deployments as a reason behind the deal. With the acquisition, the chipmaker aims to make it easier for customers to access and manage GPU solutions, expecting to see better GPU use, improved management of GPU infrastructure, and more flexibility due to an open architecture system.

Nvidia plans to keep Run:ai’s current business model for now, with Calcalist reporting that Run:ai staff will join the chipmaker’s R&D center in Israel, where it employs about 3,000 people. Run:ai’s upcoming products will also be included in Nvidia’s DGX Cloud, an AI platform that works with top cloud providers to serve enterprise developers.

This continues Nvidia’s investment streak for the year. In January, it joined the US$150 million round of no-code platform Kore.ai. Earlier this month, it co-invested US$200 million each for an AI center in Indonesia and an AI factory in Vietnam.

Meanwhile, Run:ai has raised US$118 million in disclosed funding since its 2018 founding. Its latest financing is a US$75 million series C round co-led by Tiger Global in March 2022.

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