Overview
- Groq said it signed a non-exclusive license for its inference technology with Nvidia, will remain independent under new CEO Simon Edwards, and will keep GroqCloud running without interruption.
- Nvidia CEO Jensen Huang told employees the company plans to integrate Groq’s low-latency processors into its AI factory architecture to broaden real-time and inference workloads.
- Several outlets, citing investor Alex Davis of Disruptive, reported Nvidia agreed to buy Groq’s assets for roughly $20 billion in cash, though neither company has acknowledged an outright acquisition.
- The arrangement mirrors Silicon Valley licensing-plus-talent deals often described as acquihires, with Groq founder Jonathan Ross, president Sunny Madra, and other engineers moving to Nvidia.
- Groq raised $750 million in September at a $6.9 billion valuation, and Nvidia’s cash and short-term investments totaled about $60.6 billion at the end of October, supporting sizable transactions.