  Using the correspondence between gauge theories and string theory in curved
backgrounds, we investigate aspects of the large $N$ limit of non-commutative
gauge theories by considering gravity solutions with $B$ fields. We argue that
the total number of physical degrees of freedom at any given scale coincides
with the commutative case. We then compute a two-point correlation function
involving momentum components in the directions of the $B$-field. In the UV
regime, we find that the two-point function decays exponentially with the
momentum. A calculation of Wilson lines suggests that strings cannot be
localized near the boundary. We also find string configurations that are
localized in a finite region of the radial direction. These are worldsheet
instantons.
