Nvidia expands AI empire with Groq licensing deal, poaching startup’s top execs

6 1 minute read

Nvidia has reached an agreement to license chip technology from startup Groq and bring on board its CEO, a former Google executive, as stated in a blog post by Groq on Wednesday.

Groq specializes in inference, focusing on artificial intelligence models that respond to user requests after being trained.

While Nvidia is a dominant force in training AI models, the competition is tougher in inference, with rivals like Advanced Micro Devices and startups like Groq and Cerebras Systems challenging its position.

Nvidia CEO Jensen Huang emphasized the company’s ability to maintain its leadership position as AI markets transition from training to inference. Getty Images

Groq announced that Nvidia has secured a “non-exclusive” license to its technology. The company also mentioned that its founder Jonathan Ross, along with Groq President Sunny Madra and other engineers, will be joining Nvidia.

A source close to Nvidia confirmed the licensing deal.

Financial terms of the agreement were not disclosed by Groq. CNBC previously reported that Nvidia was set to acquire Groq for $20 billion in cash, although neither Nvidia nor Groq commented on the report. Groq stated in their blog post that they will remain an independent entity with Simon Edwards as CEO, and their cloud business will continue to operate.

Following a $750 million funding round in September, Groq’s valuation has more than doubled from $2.8 billion to $6.9 billion.