Groq, an AI chip startup, has entered into a non-exclusive licensing agreement with Nvidia aimed at advancing and scaling Groq’s technology. As part of this agreement, key members of Groq, including its founder Jonathan Ross and president Sunny Madra, will transition to Nvidia, while Groq will maintain its status as an independent entity under the leadership of new CEO Simon Edwards. GroqCloud will continue its operations without disruption.
The deal, first reported by CNBC, is valued at $20 billion in cash, marking Nvidia's largest acquisition to date. Alex Davis, CEO of Disruptive, the firm that led Groq's most recent funding round, has indicated that his company has invested over half a billion dollars in Groq over the past nine years.
Nvidia aims to integrate Groq’s low-latency processors into its AI factory architecture, enhancing its platform to support a wider array of AI inference and real-time workloads. Nvidia CEO Jensen Huang emphasized the strategic importance of this acquisition for extending the company’s capabilities in the AI sector.
Nvidia is experiencing significant growth, reporting revenues of $57 billion for the third quarter of 2025, exceeding analysts' expectations. This positive financial trend is expected to continue into the fourth quarter, particularly as demand for Nvidia's Blackwell chips and cloud GPUs remains high.
In summary, this agreement represents a significant move for both companies, with Nvidia looking to bolster its AI offerings through Groq’s technology while Groq continues to operate independently under new leadership.