rewrite this title Record Acquisition from NVIDIA: AI Chip Startup Groq Joins NVIDIA for $20 Billion | Metaverse Planet

NVIDIA has acquired the assets of Groq, a startup designing AI accelerator chips, for exactly $20 billion. This deal marks a record in NVIDIA‘s history.

NVIDIA has reached an agreement to purchase the assets of Groq, a startup designing high-performance AI accelerator chips, for approximately $20 billion in cash. Confirmed by Alex Davis, CEO of Disruptive who managed the startup’s latest investment round, this development has been recorded as NVIDIA‘s largest acquisition to date.

The structure of the deal was stated as an asset transfer and technology licensing rather than a complete takeover of the company. In a statement made by Groq, it was noted that a licensing agreement was signed with NVIDIA. In this context, top-level leaders like Groq‘s founder and former Google TPU creator Jonathan Ross and President Sunny Madra will join the company to develop the technology under the NVIDIA umbrella.

Groq Assets and Team Join NVIDIA

NVIDIA CEO Jensen Huang, in an email sent to employees, touched upon the strategic importance of this move and stated that they plan to integrate Groq‘s low-latency processors into NVIDIA‘s AI factory architecture. Huang specifically emphasized that they have added talented engineers to their team and licensed intellectual property rights, but they did not acquire Groq as a company.

Groq, which received investment with a valuation of $6.9 billion just three months ago and has the support of giants like Blackrock, Samsung, and Cisco, was targeting $500 million in revenue this year. Although the company was not in an active search for a sale, the agreement was concluded quickly upon the offer from NVIDIA.

With this move, NVIDIA reinforces its dominance in the AI ecosystem, while it seems it will continue to increase its influence in the sector with investments made in other startups like Crusoe, Cohere, and CoreWeave.

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