Nvidia licensed Groq's artificial intelligence technology.

Strategic Partnership between Nvidia and Groq in Artificial Intelligence Technologies

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

Joining Nvidia with the Groq Team

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 continue to operate as an independent company with Simon Edwards taking on the role of CEO. There will be no disruption to GroqCloud services.

Financial Support and Goals

As one of the pioneering 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. Notable investors include well-known names like Samsung, Cisco, and Altimeter.

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

A Turning Point in Nvidia's History

Jonathan Ross, one of the founders of Groq, who was established in 2016, is among the creators of Google's custom chip known as 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 occurs, it will be Nvidia’s largest acquisition to date and will overshadow the company's previous highest acquisition amount, which was the $7 billion purchase of Mellanox in 2019.