Nvidia licensed Groq's artificial intelligence technology.

Strategic Partnership between Nvidia and Groq in Artificial Intelligence Technologies

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

Joining the Nvidia Team from Groq

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 disruption in GroqCloud services.

Financial Support and Goals

Groq, one of the pioneers in artificial intelligence inference, announced in September that it had raised $750 million at a valuation of $6.9 billion. This funding round was led by Disruptive, with significant contributions from important 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 aims for a revenue target of $500 million for this year. The interest in AI accelerator chips designed to accelerate inference processes of 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 specialized chip, the tensor processing unit (TPU). According to information from CNBC, Nvidia plans to purchase 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 overshadow the company’s highest previous acquisition, the $7 billion Mellanox purchase in 2019.