Nvidia strikes $20 billion deal to acquire Groq assets
Groq, an AI chip startup, entered into an agreement with Nvidia to help "advance and scale" Groq's tech.
"As part of this agreement, Jonathan Ross, Groq’s Founder, Sunny Madra, Groq’s President, and other members of the Groq team will join Nvidia to help advance and scale the licensed technology," Groq announced in a blog post on Wednesday. "Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer. GroqCloud will continue to operate without interruption."
The deal was first reported as an exclusive with CNBC on Wednesday. Alex Davis, the CEO of Disruptive, the company that led Groq's latest financing round, said Nvidia has agreed to buy Groq's assets for $20 billion in cash, the news outlet reported.
Davis's firm has invested more than half a billion dollars in Groq over the past nine years, CNBC reported.
"We plan to integrate Groq’s low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads," Nvidia CEO Jensen Huang wrote in an email obtained by CNBC.
This is Nvidia’s largest deal ever, according to CNBC.
The company, which produces GPU chips that power many AI models, has reported surging revenues this year. Nvidia made $57 billion in revenue during the third quarter of 2025, a whopping $2 million more than Wall Street analysts expected, Mashable's Chris Taylor reported in November. The fourth quarter of 2025 is predicted to be even better for the company.
"Sales are off the charts," Huang said of the company's Blackwell chips at the time. "Cloud GPUs are sold out."