Nvidia licensed Groq's artificial intelligence technology.

Strategic Cooperation 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

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 pioneering companies in artificial intelligence inference, Groq announced in September that it raised $750 million at a valuation of $6.9 billion. This investment round was led by Disruptive, with significant contributions from major fund managers including Blackrock, Neuberger Berman, and DTCP. Notable names among current investors include Samsung, Cisco, and Altimeter.

In response to the increasing demand for artificial intelligence, Groq aims for a revenue of $500 million for this year. The interest in AI accelerator chips aimed at speeding up the inference processes of large language models is also noteworthy, underpinning the company's growth.

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 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, overshadowing the company's previous highest acquisition amount of $7 billion for Mellanox in 2019.