Nvidia Acquires Groq in Record $20 Billion Cash Deal

Nvidia has made its largest acquisition to date, purchasing AI chipmaker Groq for $20 billion in cash. The deal triples the size of its previous record purchase—the $7 billion Mellanox acquisition in 2019—and draws from Nvidia's rapidly growing war chest, which now holds $60.6 billion in liquid assets.

Groq specializes in high-performance chips optimized for large language model inference, a strategic fit for Nvidia's AI dominance. Notably, the company wasn't actively seeking buyers when negotiations began. Lead investor Disruptive Capital, which injected over $500 million since Groq's 2016 founding, confirmed the transaction's unusually fast timeline.

The purchase comes just three months after Groq secured $750 million at a $6.9 billion valuation from heavyweight backers including BlackRock, Samsung, and a fund where Donald TRUMP Jr. serves as partner. Nvidia's offer represents nearly triple that valuation. The deal excludes Groq Cloud, which will operate independently post-acquisition.