Overview
- Groq confirmed a non-exclusive license with Nvidia for its inference technology as founder Jonathan Ross and president Sunny Madra depart to join Nvidia, while Simon Edwards becomes Groq CEO and GroqCloud continues operating.
- Reports indicate roughly 90% of Groq employees will move to Nvidia in a transaction widely described as an acqui-hire designed to capture IP and talent while limiting merger scrutiny.
- In an email obtained by CNBC, Huang said Nvidia will integrate Groq’s low-latency processors into its AI factory platform to serve a broader range of inference and real-time workloads.
- Multiple outlets peg the deal’s economic value near $20 billion, with payouts to Groq shareholders and employees reportedly structured as about 85% upfront, 10% in mid-2026, and the remainder at end-2026.
- Analysts say the move bolsters Nvidia’s positioning in inference by pairing its GPU ecosystem with Groq’s LPU architecture optimized for ultra-low-latency, single-stream workloads.