Nvidia licensed Groq's artificial intelligence technology.

Strategic Partnership between Nvidia and Groq in AI Technologies

Nvidia (NVDA) has signed a significant licensing agreement with Groq for artificial intelligence inference technologies. This collaboration aims to provide high performance and cost-effectiveness in AI technologies.

Joining of the Groq Team to Nvidia

As part of the agreement, Groq's founder Jonathan Ross and president Sunny Madra, along with other members of the Groq team, will join Nvidia to contribute to the development and expansion of the licensed technology. Groq will also continue to operate as an independent company with Simon Edwards taking on the CEO role. There will be no disruption to GroqCloud services.

Financial Support and Goals

As one of the leading companies in AI inference, Groq announced in September that it raised $750 million at a valuation of $6.9 billion. This investment round was led by Disruptive, with significant contributions from major fund managers such as Blackrock, Neuberger Berman, and DTCP. Among current investors are well-known names like Samsung, Cisco, and Altimeter.

In line with the growing demand for artificial intelligence, Groq's revenue target for this year is $500 million. The interest in AI accelerator chips aimed at speeding up the inference processes of large language models is noteworthy.

A Turning Point in Nvidia's History

Jonathan Ross, one of the co-founders of Groq, was among the creators of Google's special chip, the tensor processing unit (TPU). According to CNBC, Nvidia plans to acquire Groq's assets for a total of $20 billion. Disruptive CEO Alex Davis emphasized that the agreement will not affect Groq's independent cloud business.

If this acquisition goes through, it will become Nvidia's largest acquisition to date, surpassing the company's previous highest acquisition figure of $7 billion for Mellanox in 2019.