Nvidia’s Record-Breaking Acquisition of AI Chip Startup Groq for $20 Billion
In a landmark move, Nvidia has sealed a deal to acquire assets from AI chip startup Groq for a staggering $20 billion in cash. This marks a pivotal consolidation in the artificial intelligence hardware sector.
The deal was swiftly put together, as reported by Alex Davis, CEO of Disruptive, which spearheaded Groq’s latest financing round in September. Groq, valued at a mere $6.9 billion three months prior after raising $750 million, is renowned for designing high-performance artificial intelligence accelerator chips.
As part of the agreement, Groq founder and CEO Jonathan Ross, company president Sunny Madra, and other senior leaders will join the ranks of Nvidia. Their mission will be to help advance and scale the licensed technology. Meanwhile, Groq will maintain its independence, with finance chief Simon Edwards stepping up as the new CEO. Groq’s GroqCloud business will continue to operate without interruption.
This acquisition significantly overshadows Nvidia’s previous record purchase—the $7 billion acquisition of Israeli chip designer Mellanox in 2019. The deal fortifies Nvidia’s stronghold in the AI inference market, especially considering the company’s impressive $60.6 billion in cash and short-term investments as of late October.
Source: CNBC