Nvidia Acquires Groq for $20 Billion in Cash

Nvidia has agreed to acquire all assets of Groq, a high-performance AI accelerator chip designer, for $20 billion in cash, according to Alex Davis, CEO of Disruptive, which led Groq’s latest financing round in September.

This deal follows Groq raising $750 million in September at a valuation of around $6.9 billion, up from $2.8 billion in August last year, marking Nvidia’s largest acquisition since purchasing Mellanox Technologies for $6.9 billion.

Davis clarified that the deal includes all of Groq’s assets except its nascent Groq Cloud business, which will continue operating uninterrupted. Groq stated in a blog post that it has entered into a “non-exclusive licensing agreement with Nvidia for Groq’s inference technology,” with founder Jonathan Ross, President Sunny Madra, and other senior leaders joining Nvidia to advance the licensed technology.

Nvidia CEO Jensen Huang told employees that the agreement will expand Nvidia’s capabilities: “We plan to integrate Groq’s low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads.”

This acquisition is part of Nvidia’s broader investments in chip startups and AI infrastructure amid growing global demand for AI accelerator chips and faster processing for large language models.