Nvidia expands AI empire with Groq licensing deal,

Nvidia expands AI empire with Groq licensing deal,

Nvidia has agreed to license chip technology from startup Groq and rent away its CEO, a veteran of Alphabet’s Google, Groq said in a weblog submit on Wednesday.

Groq makes a speciality of what is named inference, the place artificial intelligence fashions that have already been skilled reply to requests from customers.

While Nvidia dominates the marketplace for training AI fashions, it faces a lot more competitors in inference, the place conventional rivals such as Advanced Micro Devices have aimed to challenge it in addition to startups such as Groq and Cerebras Systems.

Nvidia CEO Jensen Huang spent a lot of his largest keynote speech of 2025 arguing that Nvidia would be capable of preserve its lead as AI markets shift from training to inference. Getty Images

Groq said that Nvidia had agreed to a “non-exclusive” license to Groq’s technology. Groq said that its founder Jonathan Ross, who helped Google start its AI chip program, in addition to Groq President Sunny Madra and other members of its engineering team will be a part of Nvidia.

An individual near Nvidia confirmed the licensing settlement.

Groq didn’t disclose monetary particulars of the deal. CNBC earlier reported that Nvidia had agreed to amass Groq for $20 billion in money, however neither Nvidia nor Groq commented on the report. Groq said in its weblog submit that it would continue to function as an unbiased company with Simon Edwards as CEO and that its cloud enterprise will continue working.

Groq more than doubled its valuation to $6.9 billion, from $2.8 billion in August last yr, following a $750 million funding round in September.

Groq more than doubled its valuation to $6.9 billion, from $2.8 billion in August last yr, following a $750 million funding round in September. by way of REUTERS

Groq is one in every of quite a few upstarts that don’t use exterior high-bandwidth reminiscence chips, which free them from the reminiscence crunch affecting the global chip trade. The strategy, which makes use of a type of on-chip reminiscence called SRAM, helps speed up interactions with chatbots and other AI fashions however also limits the measurement of the mannequin that could be served.

Groq’s main rival in the strategy is Cerebras Systems, which Reuters earlier this month reported plans to go public as soon as next yr. Both Groq and Cerebras have signed large offers in the Middle East.

Nvidia CEO Jensen Huang spent a lot of his largest keynote speech of 2025 arguing that Nvidia would be capable of preserve its lead as AI markets shift from training to inference.

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