Nvidia, a leading chip company, has received approval from the European Union to complete its acquisition of Run:ai, an Israeli GPU orchestration platform. The EU's unanimous decision, reported by Bloomberg, paves the way for the deal to move forward, pending approval from the US Department of Justice.

The European Commission's approval was based on its determination that the merger would not create a monopoly, as other hardware options compatible with Nvidia would still be available on the market. This decision is a significant milestone for Nvidia, which announced its intention to acquire Run:ai in April.

Despite the EU's green light, the deal remains stuck in the US, where the Department of Justice is still reviewing the acquisition. The timeline for US approval is unclear, leaving the fate of the deal uncertain. The delay has sparked concerns about the potential impact on the AI market, where consolidation is increasingly seen as a key strategy for growth.

The acquisition, valued at around $700 million according to Bloomberg's reporting, is seen as a strategic move by Nvidia to bolster its position in the AI market. Run:ai's GPU orchestration platform is designed to optimize AI workloads, making it an attractive asset for Nvidia's AI ambitions.

The EU's approval is likely to be welcomed by other AI startups with acquisition and acquihire aspirations, as it suggests that consolidation is still possible in the AI market. However, the ongoing scrutiny from the US Department of Justice serves as a reminder that regulatory hurdles can still pose significant challenges to deal-making in the tech industry.

As the AI market continues to evolve, the outcome of this deal will be closely watched by industry observers. If approved, the acquisition could have significant implications for the development of AI technologies and the competitive landscape of the industry. For now, Nvidia and Run:ai must wait for the US Department of Justice to render its verdict.