US EditionNvidia Quietly Bought a Competitor Last Week. Why Analysts Believe This Could Be Big Deal for the Stock
Nvidia’s $20 billion deal includes licensing Groq’s AI inference technology and hiring its founder and key executives to curb competition and expand chip innovation.
- On Friday, Groq announced a non-exclusive licensing agreement with Nvidia for Groq's inference technology, with one outlet reporting the deal at $20 billion, Nvidia's largest to date.
- Amid big tech searches for alternatives, Nvidia used the deal to eliminate a potential competitor and gain new chip technology, structuring a non-exclusive license to limit regulatory scrutiny.
- Under the agreement, Jonathan Ross, Sunny Madra and Groq's core engineering team will join Nvidia while Groq continues operating with its CFO leading GroqCloud; Groq claims its chips are language processing units.
- Up nearly 6% over the past month, Nvidia spent $20 billion—just 30% of its gross cash—with Paul Meeks saying `NVDA seems to be making a savvy wager to protect and maybe even widen its moat`.
- The deal could reshape competition as U.S. and international regulators scrutinize Nvidia's market share, affecting rivals including Advanced Micro Devices, Broadcom, Marvell Technology, and cloud customers.
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BizTocNvidia's "Aqui-Hire" of Groq Eliminates a Potential Competitor and Marks Its Entrance Into the Non-GPU, AI Inference Chip Space
Key PointsNvidia is entering into a non-exclusive licensing agreement for Groq’s AI inference technology. Nvidia's reportedly paying $20 billion for this deal, about three times Groq's most recent valuation. Groq founder and CEO Jonathan Ross -- who will join Nvidia along with other Groq personnel -- is widely considered the creator of Google’s TPU.10 stocks we like better than Nvidia › On Friday, artificial intelligence (AI) chip start-up Groq …
Why Nvidia’s Groq deal is so key for the future of AI
Chipmakers Nvidia and Groq entered a non-exclusive technology licensing agreement last week to accelerate and reduce the cost of running pre-trained large language models using Groq’s language processing unit chips. Groq’s language processing unit chips power real-time chatbot queries during the inference stage of AI operations, distinct from the model training process. These chips enable AI models to generate responses rapidly in applications s…
Groq’s staggering Nvidia deal has strong Canadian connections
Over the holidays, Nvidia came calling for AI infrastructure startup Groq to the tune of a reported $20 billion USD. Several Canadian investors who backed the San Jose, Calif.-based startup are poised to cash out, big-time. The eye-watering deal, which Groq framed as a non-exclusive licensing partnership, brings key Groq executives over to Nvidia and licenses its intellectual property to the larger chip company. Groq will remain an independent …
News extracted from HD Technology. Visit www.hd-tecnologia.com for the latest news. Future NVIDIA GPU based on Feynman architecture, planned for 2028, could incorporate SRAM memory blocks stacked in a similar way to those used by AMD with its 3D V-Cache technology. The informant identified as AGF, and relies on recent developments linked to the NVIDIA strategy in acceleration of specific loads. Days ago it was learned that NVIDIA acquired a rele…
Nvidia has struck a deal with nine-year-old chip startup Groq from Mountain View, California. Oddly enough, it's not an acquisition, as is customary in these business circles, but a non-exclusive technology licensing agreement. At the same time, some of the company's top minds will join Nvidia, including the founder and ...
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