Nvidia has agreed to bring the founder and senior engineering leadership of Groq into its organization as part of a reported multi-billion-dollar deal focused on inference technology rather than a full company acquisition.
Citing Disruptive CEO Alex Davis, CNBC reports that Nvidia purchased assets from Groq to the tune of $20 billion.
The deal marks the largest purchase Nvidia has ever made while stopping short of acquiring Groq outright.
Groq frames the move as a non-exclusive licensing agreement with Nvidia for its inference technology, describing it as a joint effort to expand access to high-performance, low-cost AI inference. As part of the agreement, Groq founder Jonathan Ross, president Sunny Madra, and other senior members of the team will join Nvidia to help advance and scale the licensed technology.
Nvidia CEO Jensen Huang tells employees in an internal message that the deal focuses on absorbing key personnel and licensing Groq’s core technology.
“While we are adding talented employees to our ranks and licensing Groq’s IP, we are not acquiring Groq as a company.”
Huang’s message also points to Nvidia’s growing focus on inference and real-time AI workloads.
“We plan to integrate Groq’s low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads.”
Last month, Nvidia CEO Jensen Huang named agentic AI as the third application that justifies the trillions of dollars flowing into the AI CapEx. But he warned that compute capacity is currently not enough to fuel AI agents.
Wall Street legend Rick Sherlund recently said that large language models will be stressed by agents and agentic systems working on complex tasks for businesses. He said that demand for inference will explode as AI agents collaborate and do complex workflows.
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