Nvidia licensed Groq's artificial intelligence technology.

Strategic Partnership in Artificial Intelligence Technologies: Nvidia and Groq

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

Groq Team's Integration into 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 role of CEO. There will be no interruptions in GroqCloud services.

Financial Support and Goals

As one of the leading companies in artificial intelligence inference, Groq announced in September that it secured $750 million in new funding at a valuation of $6.9 billion. This funding round was led by Disruptive, with significant contributions from key fund managers such as Blackrock, Neuberger Berman, and DTCP. Among the current investors are prominent names like Samsung, Cisco, and Altimeter.

In line with the increasing demand for artificial intelligence, Groq aims for a revenue target of $500 million for this year. The interest in AI accelerator chips designed to expedite the inference processes of large language models is also noteworthy, laying the groundwork for the company's growth.

A Turning Point in Nvidia's History

Jonathan Ross, one of the founders of Groq established in 2016, was among the creators of Google's specialized chip, the tensor processing unit (TPU). According to CNBC reports, Nvidia plans to acquire Groq's assets for a total of $20 billion. Disruptive's CEO Alex Davis emphasized that the deal would not affect Groq's independent cloud business.

If this acquisition goes through, it will be Nvidia's largest acquisition to date, overshadowing its previous record set in 2019 with the $7 billion purchase of Mellanox.