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Nvidia buying AI chip startup Groq for about $20 billion in its largest acquisition on record
- 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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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.
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Coverage Details
Total News Sources22
Leaning Left1Leaning Right2Center6Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
11%
C 67%
R 22%
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