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 by the Groq Team

Under 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 disruption to GroqCloud services.

Financial Support and Goals

As one of the leading companies in artificial intelligence inference, Groq announced in September that it had secured $750 million in new funding 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. Notable names among current investors include 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 speed 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, established in 2016, is 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 occurs, it will be Nvidia's largest acquisition to date, eclipsing the company's previous highest acquisition figure of $7 billion for Mellanox in 2019.