Overview
- Groq announced a non‑exclusive licensing agreement with Nvidia for its inference technology, with founder Jonathan Ross, president Sunny Madra, and other engineers set to join Nvidia.
- Groq will continue operating GroqCloud under new leadership, with reporting indicating the company’s CFO is expected to become CEO.
- The companies did not disclose financial terms; major outlets have reported an unconfirmed figure near $20 billion, far above Groq’s September valuation of $6.9 billion.
- An internal email from CEO Jensen Huang, reported by CNBC, said Nvidia plans to integrate Groq’s low‑latency processors into the NVIDIA AI factory to broaden inference and real‑time support.
- Analysts framed the move as an acqui‑hire that complements Nvidia’s platform beyond GPUs, with Bank of America’s Vivek Arya reiterating a buy rating and a $275 price target.