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5d ago

Nvidia Licenses Groq’s Inference Tech and Hires Founder as Groq Stays Independent

The deal pairs licensed Groq inference IP with a transfer of top engineers to speed Nvidia’s push into real-time AI.

Groq Spokesperson on a stage
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Overview

  • Groq confirmed a non-exclusive licensing agreement for its inference technology, with founder Jonathan Ross, president Sunny Madra and other engineers moving to Nvidia.
  • Groq said it will continue operating as an independent company under new CEO Simon Edwards, with GroqCloud continuing without interruption.
  • Nvidia told employees it plans to integrate Groq’s low-latency processors into its AI factory architecture and stated it is not acquiring Groq as a company.
  • Multiple outlets cited investor Alex Davis saying the transaction is about $20 billion in cash for Groq’s assets, a figure not confirmed by Nvidia or Groq and reported as excluding GroqCloud.
  • The structure mirrors recent acquihire-style deals in Big Tech as Nvidia bolsters capabilities for AI inference, a segment where it faces more competition than in training.