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Nvidia buying AI chip startup Groq for about $20 billion in its largest acquisition on record
Nvidia’s $20 billion cash acquisition excludes Groq’s cloud business and boosts AI chip capacity amid rising demand for faster, energy-efficient language model processing.
- On May 30, 2024, Nvidia agreed to buy Groq Inc. for $20 billion in cash, excluding Groq Cloud, Groq's nascent cloud business.
- Groq, founded in 2016 by former engineers including Jonathan Ross, has been targeting revenue of $500 million this year amid booming demand for AI accelerator chips.
- Disruptive's Alex Davis said the deal came together quickly, with Groq expected to alert its investors later on Wednesday; investors included Blackrock, Neuberger Berman, Samsung, Cisco, Altimeter, and 1789 Capital.
- Groq was not pursuing a sale when approached by Nvidia, whose CFO Colette Kress declined comment, while AI chip rival Cerebras Systems withdrew an IPO after raising over $1 billion this year.
- Groq's roots go back to a 2016 $10.3 million fundraising filing, with CEO Jonathan Ross pictured at the May 30, 2024, GenAI Summit, as Nvidia's $20 billion deal would dwarf its 2019 Mellanox purchase.
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Nvidia Reportedly Shells Out $20.6 Billion For Groq, CEO Jonathan Ross Says He's Joining Rival Chip Giant Along With The Team - NVIDIA (NASDAQ:NVDA)
Groq announced a non-exclusive licensing agreement with Nvidia Corp. (NASDAQ:NVDA) for its inference technology on Wednesday, aiming to boost high-performance AI inference worldwide. The reportedly 20.6 billion cash deal highlights collaboration between the AI chip innovators amid surging demand for efficient inference solutions. Groq To Remain An Independent Company Groq has entered into a non-exclusive licensing agreement with Nvidia covering …
·New York, United States
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Founded in 2016, the Californian Groq has developed chips called "LPU" (language processing unit) designed for the use of large, generative d的IA models.
·Paris, France
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Coverage Details
Total News Sources24
Leaning Left1Leaning Right2Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
C 70%
R 20%
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