Nvidia has struck a non-exclusive licensing settlement with AI chip competitor Groq. As a part of the deal, Nvidia will rent Groq founder Jonathan Ross, president Sunny Madra, and different workers.
CNBC reported that Nvidia is buying property from Groq for $20 billion; Nvidia advised TechCrunch that this isn’t an acquisition of the corporate and didn’t touch upon the scope of the deal. But when CNBC’s numbers are correct, this buy is anticipated to be Nvidia’s largest ever, and with Groq on its aspect, Nvidia is poised to turn out to be much more dominant in chip manufacturing.
As tech firms compete to develop their AI capabilities, they want computing energy, and Nvidia’s GPUs have emerged because the trade commonplace. However Groq has been engaged on a distinct kind of chip known as an LPU (language processing unit), which it has claimed can run LLMs at 10 instances quicker and utilizing one-tenth the vitality. Groq’s CEO Jonathan Ross is thought for this form of innovation — when he labored for Google, he helped invent the TPU (tensor processing unit), a customized AI accelerator chip.
In September, Groq raised $750 million at a $6.9 billion valuation. Its development has been fast and important — the corporate stated that it powers the AI apps of greater than 2 million builders, up from about 356,000 final 12 months.
Up to date, 12/24/25 at 5:40 p.m. ET, with clarification from Nvidia in regards to the nature of the deal.
