Nvidia deal delay leads to $200M windfall for Run:ai founders and employees
Nvidia deal delay leads to $200M windfall for Run:ai founders and employees
Eight-month regulatory investigation raises value of retention bonuses tied to Nvidia shares.
Nvidia’s $800 million acquisition of Israeli artificial intelligence company Run:ai has been finalized, bringing closure to an eight-month regulatory review process. While the deal’s delay may have caused frustration for some, it turned out to be a windfall for Run:ai’s employees and founders, whose retention package doubled in value thanks to Nvidia’s rising stock price during the review period.
Of the total acquisition value, $200 million has been allocated to retain Run:ai’s team, paid in Nvidia shares. When the deal was initially announced in April, this component of the transaction was valued at approximately $100 million. However, Nvidia’s stock price surged significantly between the in-principle agreement and the deal’s completion, doubling the value of the stock-based payouts. It is, however, unclear exactly how much the entrepreneurs and employees will benefit as some sources suggest that share agreements may have included mechanisms to cap valuation increases, mitigating potential volatility.
The review process included examinations by both the U.S. Department of Justice (DOJ) and the European Commission.
Founded in 2018 by Omri Geller and Dr. Ronen Dar, Run:ai specializes in virtualization technology that maximizes the performance of AI processors. The company’s close collaboration with Nvidia predates the acquisition, with Run:ai’s operating system designed to optimize Nvidia’s AI chips, a crucial offering amid a global chip shortage.
For Nvidia, this acquisition represents another significant step in its investment in Israel’s tech ecosystem. Run:ai is the company’s largest Israeli acquisition since its $6.9 billion purchase of Mellanox in 2019, adding to its local R&D operations, which now employ over 4,000 people.
“This is a testament to the incredible work done by the team over the years,” said Geller and Dar in a statement. “Joining Nvidia not only validates our vision but also enables us to expand it further while maintaining our commitment to the broader AI ecosystem.”
