Nvidia, a leading name in the semiconductor industry, is reportedly in the final stages of discussions to purchase Run:ai, a company specializing in AI infrastructure management and orchestration software. This acquisition is rumored to be valued at several hundred million dollars, potentially reaching the billion-dollar mark, though neither company has officially commented on the matter.

Founded in 2018 by Omri Geller and Dr. Ronen Dar, Run:ai has garnered attention for its innovative software that optimizes AI workloads on GPUs through a Kubernetes-based container platform. This platform enables the efficient allocation of GPU resources, from partial to multiple GPU units across several nodes, catering specifically to the demanding requirements of AI applications.

In its Series C funding round in March 2022, Run:ai successfully raised $75 million, led by Tiger Global Management and Insight Partners, with contributions from existing investors including TLV Partners and S Capital VC. This funding round brought the company’s total investment to $118 million.

Nvidia’s interest in acquiring Run:ai marks its first potential acquisition in Israel since it purchased Mellanox for $6.9 billion in 2019. This move aligns with Nvidia’s strategy to bolster its position in the AI sector, a domain where it has experienced significant growth. Nvidia has recently become the world’s third-most valuable company, with its market capitalization soaring to $2.2 trillion, driven by the explosive demand for its AI chips, which dominate the high-end AI chip market.

The acquisition of Run:ai would further enhance Nvidia’s capabilities in AI infrastructure, adding a sophisticated orchestration and virtualization layer that complements its hardware offerings. This deal comes at a time when Nvidia continues to make significant strides in the AI industry, as evidenced by its rapid valuation increase and dominant market presence.

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