NVDA Stock: Nvidia Is Making a $700 Million Bet on This AI Startup


  • Nvidia (NVDA) stock is on the rise Wednesday after announcing its acquisition of Run.ai.
  • The company didn’t provide a number for the deal, but insiders claim it spent $700 million on the acquisition.
  • Nvidia will continue the AI startup’s operations while investing in its Nvidia DGX Cloud roadmap.
NVDA Stock - NVDA Stock: Nvidia Is Making a $700 Million Bet on This AI Startup

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Nvidia (NASDAQ:NVDA) stock is a hot topic on Wednesday after the semiconductor company announced its acquisition of Run:ai.

Run:ai is a workload management and orchestration software provider that operates on Kubernetes. This is the “orchestration layer” that is used for modern artificial intelligence (AI).

Omri Geller, co-founder and CEO of Run.ai, said the following about the Nvidia acquisition:

“Run:ai has been a close collaborator with NVIDIA since 2020 and we share a passion for helping our customers make the most of their infrastructure […] We’re thrilled to join NVIDIA and look forward to continuing our journey together.”

NVDA Stock: Terms of the Acquisition

Nvidia didn’t reveal how much money it’s spending to acquire the AI startup. However, insiders previously reported that the tech giant would pay $700 million to bring the business into its fold.

Nvidia notes that it will continue to offer Run.ai’s current products following the acquisition. The company will also continue to invest in the AI startup as part of its Nvidia DGX Cloud roadmap.

NVDA stock is up 1% as of Wednesday morning with more than 12 million shares traded. That’s still below its daily average trading volume of about 53 million shares.

Investors who are searching for more of the latest stock market stories on Wednesday are going to want to stick around!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/nvda-stock-nvidia-is-making-a-700-million-bet-on-this-ai-startup/.

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