Nvidia Does 20 Billion Deal With Groq Nextbigfuture Com

Nvidia has agreed to buy assets from Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, according to Alex Davis, CEO of Disruptive, which led the startup's latest financing... Davis, whose firm has invested more than half a billion dollars in Groq since the company was founded in 2016, said the deal came together quickly. Groq raised $750 million at a valuation of about $6.9 billion three months ago. Investors in the round included Blackrock and Neuberger Berman, as well as Samsung, Cisco, Altimeter and 1789 Capital, where Donald Trump Jr. is a partner. Groq said in a blog post Wednesday that it's "entered into a non-exclusive licensing agreement with Nvidia for Groq's inference technology," without disclosing a price.

With the deal, Groq founder and CEO Jonathan Ross along with Sunny Madra, the company's president, and other senior leaders "will join Nvidia to help advance and scale the licensed technology," the post said. Groq added that it will continue as an "independent company," led by finance chief Simon Edwards as CEO. Colette Kress, Nvidia's CFO, declined comment on the transaction. Nvidia chief executive Jensen Huang said the deal would strengthen the company’s AI offerings. (Photo: Reuters) Don't miss the most important news and views of the day.

Get them on our Telegram channel First Published: Dec 25 2025 | 11:46 AM IST The chip giant is acquiring Groq’s IP and engineering team as it moves to lock down the next phase of AI compute. When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Nvidia has announced a $20 billion deal to acquire Groq’s intellectual property.

While it's not the company itself, Nvidia will absorb key members of its engineering team, including its ex-Google engineer founder, Jonathan Ross, and Groq president Sunny Madra, marking the company’s largest AI-related transaction since... Nvidia’s purchase of Groq’s LPU IP focuses not on training — the space Nvidia already dominates — but inference, the computational process that turns AI models into real-time services. Groq’s core product is the LPU, or Language Processing Unit, a chip optimized to run large language models at ultra-low latency. Where GPUs excel at large-batch parallelism, Groq’s statically scheduled architecture and SRAM-based memory design enable consistent performance for single-token inference workloads. That makes it particularly well-suited for applications like chatbot hosting and real-time agents, exactly the type of products that cloud vendors and startups are racing to scale. In a move that has sent shockwaves through Silicon Valley and Wall Street alike, Nvidia (NASDAQ: NVDA) announced a landmark $20 billion licensing agreement and strategic "acqui-hire" of AI chip disruptor Groq on December...

The deal, finalized just as the market closed for the holiday break, represents the most significant consolidation of AI hardware power since the start of the generative AI boom. By integrating Groq’s high-speed Language Processing Unit (LPU) technology into its own massive ecosystem, Nvidia is positioning itself to dominate the "inference era"—the phase where AI models are deployed at scale rather than just... The immediate implications of this deal are profound. Nvidia is no longer just the king of AI training; it has effectively neutralized its most credible threat in the ultra-low-latency inference market. As the industry pivots toward real-time "agentic" AI and digital humans, the ability to process tokens at lightning speed has become the new gold standard. With this deal, Nvidia has not only secured the intellectual property necessary to maintain its lead but has also absorbed the engineering talent responsible for the world’s fastest inference architecture, setting the stage for...

The agreement, valued at roughly $20 billion, is structured as a non-exclusive licensing deal paired with a massive "acqui-hire" of Groq’s core leadership and engineering teams. This complex structure was reportedly chosen to navigate the increasingly treacherous waters of global antitrust regulation. Under the terms, Groq’s founder and CEO Jonathan Ross—a primary architect of the original Google (NASDAQ: GOOGL) TPU—and President Sunny Madra will join Nvidia’s executive ranks. Meanwhile, Groq will continue to operate as an independent entity under new CEO Simon Edwards to maintain its existing cloud service contracts and avoid direct competition with Nvidia’s primary data center customers. The timeline leading up to this moment was characterized by a quiet but intense bidding war. Throughout late 2025, Groq had seen its valuation soar to nearly $7 billion as its LPU technology consistently outperformed Nvidia’s Blackwell architecture in raw inference speed for large language models (LLMs).

Recognizing that the "memory wall" of traditional GPU architectures was becoming a bottleneck for real-time applications, Nvidia CEO Jensen Huang moved decisively to bring Groq’s deterministic Tensor Streaming Processor (TSP) architecture into the fold. The deal was reportedly fast-tracked in November after Groq demonstrated a 10x speed advantage in "prefill" latency for the latest Llama 4 models. Market reaction has been overwhelmingly bullish, though tinged with awe at Nvidia's aggressive tactics. Analysts have dubbed the move the "Inference Play of the Decade," noting that it effectively closes the gap in Nvidia’s hardware stack. By merging the parallel throughput of GPUs with the sequential speed of LPUs, Nvidia is creating a heterogeneous computing platform that competitors will find nearly impossible to replicate. The timing, just days before the 2026 Consumer Electronics Show (CES), suggests that Nvidia is preparing to unveil a new category of "Inference-First" hardware that could redefine the personal computing and data center markets...

SANTA CLARA, California, December 24, 2025 – Nvidia has reached an agreement to license technology from AI inference startup Groq and hire key executives, including founder Jonathan Ross, in a transaction valued at approximately... The deal, described by Groq as a non-exclusive licensing arrangement for its inference technology, will see Ross, President Sunny Madra, and other senior leaders join Nvidia to scale the licensed IP. Groq will continue operating independently, with finance chief Simon Edwards stepping in as CEO, and its GroqCloud service remaining uninterrupted. Groq’s Language Processing Units (LPUs) specialize in low-latency inference, claiming up to 10 times faster execution and one-tenth the energy use compared to traditional GPUs for running pre-trained AI models. The startup, founded in 2016 by former Google engineers who developed the Tensor Processing Unit, raised $750 million in September at a $6.9 billion valuation. Nvidia CEO Jensen Huang stated the partnership would “extend our platform to serve a broad range of AI inference and real-time workloads.” Nvidia declined to comment on financial terms, while Groq emphasized continuity for...

The transaction represents Nvidia’s largest to date, surpassing its $6.9 billion Mellanox acquisition in 2019. It follows similar talent-and-IP deals, such as Nvidia’s $900 million arrangement with Enfabrica earlier this year.

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