The US Department of Justice (DOJ) is reportedly investigating Nvidia’s acquisition of Israeli AI infrastructure orchestration and management service Run:ai on antitrust grounds, according to sources familiar with the matter, as reported by Politico. This investigation signals potential concerns about Nvidia’s growing dominance in the rapidly evolving AI hardware and software ecosystem.

Run:ai specializes in streamlining and optimizing the deployment of AI models on complex hardware environments, enabling businesses to manage their computing resources efficiently and achieve significant cost savings. The acquisition, announced in June 2023, was valued at over $1 billion, marking a substantial investment by Nvidia into this critical area of AI development.

However, the DOJ’s investigation raises questions about the potential competitive implications of the deal. Some industry experts believe that Nvidia’s control over Run:ai’s technology could stifle innovation and create a monopoly in the emerging market for AI infrastructure management. They argue that this could limit choices for businesses and hinder the development of competing technologies.

Nvidia, for its part, has defended the acquisition, claiming that it will accelerate the development of AI and benefit the broader industry. The company argues that the combined resources will allow for faster development of cutting-edge AI solutions.

The DOJ investigation underscores the increasing scrutiny surrounding Nvidia’s activities in the AI space. The company has already faced criticism for its dominance in the GPU market, which is essential for training and running AI models. The DOJ’s investigation into the Run:ai acquisition could set a precedent for future antitrust reviews of Nvidia’s strategic moves in the AI landscape.

It remains to be seen how this investigation will unfold. The DOJ could ultimately decide to approve the acquisition with conditions, block it entirely, or pursue further action against Nvidia. The outcome of this investigation will have significant implications for the future of AI development and competition in the tech industry.