NVIDIA Strikes $20B Deal for Groq’s AI Chip Assets in Landmark Acquisition
NVIDIA Corporation (NVDA) shares held steady at $188.61 despite announcing its largest acquisition to date—a $20 billion cash deal for AI chip startup Groq. The transaction eclipses NVIDIA's 2019 Mellanox purchase and signals aggressive expansion into AI inference workloads, where Groq's accelerator technology directly competes with NVIDIA's GPUs.
Founded by ex-Google engineers including TPU co-creator Jonathan Ross, Groq brings specialized architecture for high-speed AI processing. NVIDIA's $60.6 billion war chest ensures balance sheet stability while absorbing the startup's talent and IP. Market observers note the deal could reshape competitive dynamics in AI hardware.