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 technologies. This collaboration aims to provide high performance and cost-effectiveness in artificial intelligence technologies.

Joining Nvidia Team from Groq

As part of the agreement, Groq's founder Jonathan Ross and president Sunny Madra will join Nvidia along with other members of the Groq team 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 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. Disruptive led this funding round, with significant contributions from prominent fund managers such as Blackrock, Neuberger Berman, and DTCP. Notable existing investors include Samsung, Cisco, and Altimeter.

In line with the increasing demand for artificial intelligence, Groq aims for a revenue of $500 million for this year. The company's technologies, which lay the groundwork for growth, are gaining attention for accelerating the inference processes of large language models through artificial intelligence accelerator chips.

A Turning Point in Nvidia's History

Jonathan Ross, one of the founding names of Groq established in 2016, is among the creators of Google's special chip, the tensor processing unit (TPU). According to reports from 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 of $7 billion for Mellanox in 2019.