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Nvidia to Buy Groq’s Chip-Development Assets in ~$20 Billion Deal

A non‑exclusive license brings Groq's inference IP plus key leaders to Nvidia for integration into its AI fabric.

Overview

  • Nvidia will acquire Groq’s divisions tied to chip development under a non‑exclusive license while Groq remains independent under CEO Simon Edwards and keeps its GroqCloud business.
  • Groq president Sunny Madra and founder‑CEO Jonathan Ross will join Nvidia to help advance and scale the licensed technology.
  • Jensen Huang said Nvidia will integrate Groq processors into its AI fabric to broaden support for inference and real‑time workloads, emphasizing that Nvidia is not buying Groq as a company.
  • Following the announcement, Nvidia shares rose about 0.8% to trade above $190.16.
  • The transaction is Nvidia’s largest to date, topping its roughly $7 billion Mellanox purchase, and follows Groq’s recent $750 million funding backed by Samsung and Cisco.