Nvidia Partners with Tech Innovator Groq: A New Era for AI Chips
In a groundbreaking move in the tech industry, Nvidia has entered into a non-exclusive licensing agreement with Groq, a formidable contender in the AI chip landscape. This partnership will see Nvidia welcoming prominent figures from Groq, including its founder, Jonathan Ross, and president, Sunny Madra, into its fold.
According to a report from CNBC, Nvidia is in the process of acquiring assets from Groq for an astounding $20 billion. While Nvidia clarified to TechCrunch that this does not constitute a full acquisition of Groq, the scale of the deal hints at expanding Nvidia’s already impressive foothold in chip manufacturing. If confirmed, this would mark Nvidia’s largest deal yet, potentially solidifying its dominance in the rapidly evolving AI sector.
As the race to enhance AI capabilities heats up among major tech players, computational power remains a critical factor. Nvidia’s graphics processing units (GPUs) have established themselves as the gold standard in this realm. Meanwhile, Groq has been pioneering an innovative alternative: the Language Processing Unit (LPU). This cutting-edge chip claims to execute large language models (LLMs) ten times faster while consuming only one-tenth of the power, setting a new standard for efficiency in the AI field. Jonathan Ross, Groq’s CEO, is renowned for his contributions to this technology; he previously played a pivotal role in the creation of Google’s tensor processing units (TPUs), another step forward in AI hardware.
Groq’s rapid ascent in the tech world is underscored by its impressive fundraising efforts, including a $750 million round in September, which propelled its valuation to $6.9 billion. In just a year, Groq has seen its reach expand dramatically, now powering the AI applications for over 2 million developers, a significant surge from around 356,000 last year.
This collaboration comes at a time when advancements in artificial intelligence are demanding ever-greater computing power. With Groq’s innovative chip technology and Nvidia’s extensive capabilities, this partnership is poised to reshape the future of AI computing and maintain Nvidia’s competitive edge in the race for advanced AI technologies.
Note: The article has been updated as of 12/24/25 to clarify the nature of Nvidia’s deal with Groq.