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Nvidia Reportedly Strikes $20 Billion Cash Deal to Buy AI Chip Startup Groq

The unconfirmed purchase, disclosed by a lead investor, would eclipse Nvidia’s Mellanox buy and carve out Groq’s cloud unit.

Overview

  • Citing Alex Davis of Disruptive, CNBC reports Nvidia has agreed to acquire Groq for about $20 billion in cash.
  • Davis says the deal covers Groq’s assets but excludes the company’s nascent Groq Cloud business.
  • Nvidia has not confirmed the transaction, and CFO Colette Kress declined comment as Groq investors were expected to be notified Wednesday.
  • If completed, the acquisition would be Nvidia’s largest to date, surpassing its roughly $7 billion purchase of Mellanox in 2019.
  • Groq raised $750 million at a valuation near $6.9 billion in September, was founded in 2016 by former Google engineers including Jonathan Ross, and has been targeting about $500 million in 2025 revenue.