Nvidia Licenses Groq's LPU Tech in a Deal Reportedly Worth $20 Billion
Nvidia has struck a licensing deal with AI chip rival Groq, hiring its founder. CNBC reports a $20 billion asset acquisition, which Nvidia denies.
The AI chip titan just embraced its rival. But this isn't a friendly handshake; it's a strategic power play that could reshape the market. Nvidia has struck a non-exclusive licensing agreement with its AI chip competitor Groq, and will hire its founder and other key employees in a stunning move.
A $20 Billion Handshake?
As part of the deal, Groq founder Jonathan Ross, president Sunny Madra, and other staff will join Nvidia. While Nvidia told TechCrunch this is not an acquisition of the company, CNBC reported that Nvidia is acquiring assets from Groq for a staggering $20 billion. If those numbers are accurate, this would be Nvidia's largest purchase ever.
The Power of the LPU
So, why Groq? The startup has been making waves with a different kind of chip called an LPU (Language Processing Unit). Groq has claimed its LPU can run Large Language Models (LLMs) 10 times faster while using just one-tenth the energy of conventional hardware. Its CEO, Jonathan Ross, is a giant in the field, known for helping invent Google's TPU (Tensor Processing Unit).
Groq's growth has been explosive. The company raised $750 million at a $6.9 billion valuation back in September. It also said its technology now powers the AI apps of more than 2 million developers, a huge jump from about 356,000 last year.
Authors
Related Articles
Beijing added an Nvidia gaming chip to its customs ban list the same week Jensen Huang visited China with Trump. Here's what it means for the chip war—and who actually wins.
SpaceX plans to invest at least $55 billion in a Texas AI chip factory called Terafab, with total costs potentially reaching $119 billion. We break down what's real, what's at stake, and who wins or loses.
Cerebras Systems is targeting a $26.6B valuation in what could be 2026's largest tech IPO. But the real story is how deeply OpenAI is embedded in its capital structure—as customer, lender, and potential shareholder.
Cerebras Systems has refiled for an IPO targeting mid-May, backed by a $23B valuation, a reported $10B OpenAI deal, and an AWS partnership. What does this mean for Nvidia's dominance and the AI chip landscape?
Beijing added an Nvidia gaming chip to its customs ban list the same week Jensen Huang visited China with Trump. Here's what it means for the chip war—and who actually wins.
SpaceX plans to invest at least $55 billion in a Texas AI chip factory called Terafab, with total costs potentially reaching $119 billion. We break down what's real, what's at stake, and who wins or loses.
Cerebras Systems is targeting a $26.6B valuation in what could be 2026's largest tech IPO. But the real story is how deeply OpenAI is embedded in its capital structure—as customer, lender, and potential shareholder.
Cerebras Systems has refiled for an IPO targeting mid-May, backed by a $23B valuation, a reported $10B OpenAI deal, and an AWS partnership. What does this mean for Nvidia's dominance and the AI chip landscape?
Thoughts
Share your thoughts on this article
Sign in to join the conversation