By Beth McKenna
Publication Date: 2025-12-28 17:00:00
Key Points
-
Nvidia is entering into a non-exclusive licensing agreement for Groq’s AI inference technology.
-
Nvidia’s reportedly paying $20 billion for this deal, about three times Groq’s most recent valuation.
-
Groq founder and CEO Jonathan Ross — who will join Nvidia along with other Groq personnel — is widely considered the creator of Google’s TPU.
- 10 stocks we like better than Nvidia ›
On Friday, artificial intelligence (AI) chip start-up Groq announced via a very brief press release that it “has entered into a non-exclusive licensing agreement with Nvidia (NASDAQ: NVDA) for Groq’s inference technology.”
The deal also includes Jonathan Ross, Groq’s founder and CEO, Sunny Madra, Groq’s president, and other members of the Groq team joining Nvidia to “help advance and scale the licensed technology.”
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
This was a smart move by Nvidia, in my view. Nvidia has tons of cash, and it makes sense to use it to accomplish two goals at once: eliminate a potential competitor and obtain a new chip technology to offer its customers.
Here’s what investors should know.
Image source: Getty Images.
As close to an acquisition as it gets
That Nvidia is not only entering into a non-exclusive license with Groq, but also hiring its founder-CEO, president, and reportedly key engineering talent, makes this deal an…