Nvidia expands AI empire with Groq licensing deal, poaching startups top execs | Latest Tech News
Nvidia has agreed to license chip technology from startup Groq and rent away its CEO, a veteran of Alphabet’s Google, Groq said in a weblog post on Wednesday.
Groq specializes in what is thought as inference, where artificial intelligence fashions that have already been educated reply to requests from customers.
While Nvidia dominates the market for training AI fashions, it faces a lot more competitors in inference, where conventional rivals such as Advanced Micro Devices have aimed to problem it as properly as startups such as Groq and Cerebras Systems.
Nvidia CEO Jensen Huang spent a lot of his largest keynote speech of 2025 arguing that Nvidia would have the ability to preserve its lead as AI markets shift from training to inference. Getty Images
Groq said that Nvidia had agreed to a “non-exclusive” license to Groq’s technology. Groq said that its founder Jonathan Ross, who helped Google start its AI chip program, as properly as Groq President Sunny Madra and other members of its engineering workforce will be part of Nvidia.
An individual close to Nvidia confirmed the licensing settlement.
Groq didn’t disclose financial particulars of the deal. CNBC earlier reported that Nvidia had agreed to purchase Groq for $20 billion in money, but neither Nvidia nor Groq commented on the report. Groq said in its weblog post that it’s going to continue to operate as an impartial company with Simon Edwards as CEO and that its cloud business will continue working.
Groq more than doubled its valuation to $6.9 billion, from $2.8 billion in August last yr, following a $750 million funding spherical in September.
Groq more than doubled its valuation to $6.9 billion, from $2.8 billion in August last yr, following a $750 million funding spherical in September. via REUTERS
Groq is one of a quantity of upstarts that don’t use exterior high-bandwidth reminiscence chips, which free them from the reminiscence crunch affecting the global chip industry. The strategy, which makes use of a kind of on-chip reminiscence called SRAM, helps pace up interactions with chatbots and other AI fashions but also limits the dimensions of the model that will be served.
Groq’s main rival in the strategy is Cerebras Systems, which GWN earlier this month reported plans to go public as soon as next yr. Both Groq and Cerebras have signed large offers in the Middle East.
Nvidia CEO Jensen Huang spent a lot of his largest keynote speech of 2025 arguing that Nvidia would have the ability to preserve its lead as AI markets shift from training to inference.
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