Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - NVIDIA Corporation just sealed a massive deal worth $20 billion in cash to acquire key assets and technology from chip startup, Groq.
This aggressive play signals the tech giant’s laser focus on securing absolute dominance in the inference sector—basically, high-speed AI data processing.
Key Takeaways
- The cash deal hits $20 billion, making it the largest acquisition in Nvidia’s history.
- The main goal is locking down inference tech to drastically speed up AI model responses.
- Groq remains an independent company focusing on cloud services, but its founder is jumping ship to Nvidia.
According to an exclusive CNBC report, this deal covers technology licenses and sees Groq founder, Jonathan Ross, moving to Nvidia’s internal team.
This jumbo figure blows past Nvidia’s previous record, the nearly $7 billion Mellanox acquisition back in 2019.
Nvidia CEO Jensen Huang stated in an internal memo that integrating Groq processors will significantly expand their "AI factory" architecture capabilities.
Although its tech assets were bought out, Groq is confirmed to keep operating as an independent entity under the leadership of its new CEO, Simon Edwards.
The remaining Groq business is now pivoting fully to developing GroqCloud services without direct operational interference from Nvidia management.
Big-name backers behind Groq, such as BlackRock, Inc. and Cisco Systems, Inc., are seeing huge wins from the valuation skyrocketing in such a short time.
With a cash pile now sitting at $60.6 billion, Nvidia can easily afford this massive expansion without shaking up its financial stability.
Now the market waits to see how this tech integration accelerates real-time AI adoption, which is becoming the next big battleground in tech.
Reference:
- Seeking Alpha, Nvidia licenses Groq inference technology, Groq executives join chipmaker. Accessed on December 26, 2025
- CNBC, Exclusive: Nvidia buying AI chip startup Groq’s assets for about $20 billion in its largest deal on record. Accessed on December 26, 2025
- Featured Image: Shutterstock
Disclaimer
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