The startup Run:ai announced on Monday that chipmaker Nvidia had completed its acquisition of the Israeli AI company.
TakeAway Points:
- Chipmaker Nvidia has completed its acquisition of Israeli AI firm Run:ai, the startup said on Monday, following antitrust scrutiny over the buyout.
- The EU antitrust watchdog had warned that the deal threatened competition in the markets where the companies operate.
- The U.S. Justice Department announced a civil enforcement action and filed a lawsuit against Jason Wilk, the CEO of Dave Inc., a financial technology business, for allegedly violating federal law.
- The Federal Trade Commission alleged the company lured users to its personal finance app by advertising cash advances of up to $500 that many never receive.
Nvidia closes $700 million Run:ai acquisition
The European Commission granted unconditional approval to Nvidia’s $700 million bid for Run:ai, which helps developers optimize infrastructure for AI, earlier in December after saying in October that the deal would require EU antitrust clearance.
The EU antitrust watchdog had warned that the deal threatened competition in the markets where the companies operate.
Its probe into the deal focused on practices that could strengthen Nvidia’s control over the market for graphics processing units (GPUs), which are the sought-after chips often employed in AI-linked tasks.
Nvidia dominates the market for AI graphics processors and commands about 80% of its share.
However, the European Commission concluded earlier in December that Run:ai’s acquisition, originally announced in April, would not raise competition concerns.
The U.S. Department of Justice is also investigating the chip giant’s buyout of Run:ai on antitrust grounds, Politico reported in August.
Regulators on both sides of the Atlantic have recently stepped up their scrutiny of tech giants’ acquisitions of startups on concerns that such deals may shut down potential rivals.
Run:ai plans to make its software open-source, it said in a blog post.
“While Run:ai currently supports only Nvidia GPUs, open-sourcing the software will enable it to extend its availability to the entire AI ecosystem,” it said.
US files complaint against fintech app Dave and its CEO
The U.S. Justice Department filed a complaint and announced a civil enforcement action on Monday against financial technology company Dave Inc. and its CEO, Jason Wilk for alleged violations of federal law.
The Justice Department and the Federal Trade Commission alleged the company lured users to its personal finance app by advertising cash advances of up to $500 that many never receive.
The complaint, filed by the Justice Department, seeks unspecified amounts of consumer redress and monetary civil penalties from the defendants and a permanent injunction to prohibit them from engaging in future violations, the Justice Department said.
The government alleges that Dave misled consumers by deceptively advertising its cash advances, charging hidden fees, misrepresenting how Dave uses customers’ tips and charging recurring monthly fees without providing a simple mechanism to cancel them.
Dave says many of such claims are incorrect and it will defend itself.
The complaint filed on Monday amends and replaces an earlier complaint that the FTC filed in November, which had named only Dave as a defendant and did not seek any civil penalties.
