NVIDIA has acquired the belongings of Groq, a startup designing AI accelerator chips, for precisely $20 billion. This deal marks a report in NVIDIA‘s historical past.
NVIDIA has reached an settlement to buy the belongings of Groq, a startup designing high-performance AI accelerator chips, for about $20 billion in money. Confirmed by Alex Davis, CEO of Disruptive who managed the startup’s newest funding spherical, this improvement has been recorded as NVIDIA‘s largest acquisition up to now.
The construction of the deal was acknowledged as an asset switch and expertise licensing somewhat than an entire takeover of the corporate. In a press release made by Groq, it was famous {that a} licensing settlement was signed with NVIDIA. On this context, top-level leaders like Groq‘s founder and former Google TPU creator Jonathan Ross and President Sunny Madra will be part of the corporate to develop the expertise beneath the NVIDIA umbrella.
Groq Belongings and Workforce Be a part of NVIDIA
NVIDIA CEO Jensen Huang, in an electronic mail despatched to staff, touched upon the strategic significance of this transfer and acknowledged that they plan to combine Groq‘s low-latency processors into NVIDIA‘s AI manufacturing unit structure. Huang particularly emphasised that they’ve added proficient engineers to their staff and licensed mental property rights, however they didn’t purchase Groq as an organization.
Groq, which acquired funding with a valuation of $6.9 billion simply three months in the past and has the assist of giants like Blackrock, Samsung, and Cisco, was concentrating on $500 million in income this yr. Though the corporate was not in an lively seek for a sale, the settlement was concluded shortly upon the provide from NVIDIA.
With this transfer, NVIDIA reinforces its dominance within the AI ecosystem, whereas it appears it should proceed to extend its affect within the sector with investments made in different startups like Crusoe, Cohere, and CoreWeave.
