US EditionWhy Did Nvidia Really Drop $20B on Groq?
Nvidia’s $20 billion deal licenses Groq’s inference chips and hires its team to address AI inference’s growing revenue role and cost challenges, now over 40% of AI income.
- Last week, Nvidia Corporation licensed Groq technology and hired most of its team including CEO Jonathan Ross in the company's reported $20 billion deal.
- Because inference is where models generate revenue, Jensen Huang, Nvidia CEO, has said inference is especially difficult and drives intense cost and latency pressures for AI services and cloud operators.
- Modern inference demands ongoing reasoning, millions of users, low latency and cost limits, while real-time systems favor specialized low-latency chips over cloud GPU clusters to avoid delays.
- Analysts say the deal positions Nvidia to hedge on inference economics and span the full hardware stack, with Karl Freund noting it could elevate the low-latency chip category.
- Huang said on a recent podcast that inference already accounts for more than 40% of AI-related revenue, while edge-focused firms like OpenInfer target edge deployments as the market remains nascent.
14 Articles
14 Articles
Nvidia has taken a striking step in the race for generative AI: it has signed a non-exclusive license of intellectual property with Groq, a chip designer focused on inference, and at the same time has incorporated part of the technical leadership of that company. The nuance is key: according to Nvidia itself, there is no acquisition. The operation is articulated as a permission to use Groq technology and as a signing of talent, without absorbing…
Inside NVIDIA’s $20B Groq Licensing Move, Speed Gains and Fewer Watts
What happens when a tech giant like NVIDIA, already dominating the AI hardware space, makes a bold $20 billion move to license innovative technology from an ambitious startup? Matt Wolfe breaks down how NVIDIA’s licensing agreement with Groq, a deal that’s anything but conventional, could reshape the future of artificial intelligence hardware. This isn’t your […] The post Inside NVIDIA’s $20B Groq Licensing Move, Speed Gains and Fewer Watts appe…
As the year draws to a close, a recently revealed agreement between Nvidia and the AI startup Groq is generating discussion in the semiconductor industry. A reported value of around 20 billion US dollars is being discussed, though Nvidia has yet to release concrete details regarding the scope, structure, or objectives of the agreement. It has only been confirmed that Groq will not be acquired, but that Nvidia will acquire technology […] Source
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