Nvidia has secured a non-exclusive licensing agreement with fellow AI chip company, Groq. As part of this arrangement, Nvidia will incorporate Groq’s founder, Jonathan Ross, president Sunny Madra, and other team members into its workforce.
CNBC reported that Nvidia is acquiring assets from Groq for $20 billion; however, Nvidia clarified to TechCrunch that this is not a full company acquisition and declined to comment on the deal’s scope. If CNBC’s figures are accurate, this purchase would stand as Nvidia’s largest ever, positioning Nvidia to further strengthen its dominance in chip manufacturing with Groq’s integration.
As technology companies vie to expand their AI capabilities, the need for robust computing power is paramount, and Nvidia’s GPUs have become the industry’s benchmark. Nevertheless, Groq has been developing a distinct chip, termed an LPU (language processing unit), which it asserts can execute large language models (LLMs) at ten times the speed and with only one-tenth of the energy consumption. Groq’s CEO, Jonathan Ross, is recognized for this type of innovation — while at Google, he contributed to the invention of the TPU (tensor processing unit), a specialized AI accelerator chip.
In September, Groq raised $750 million, achieving a valuation of $6.9 billion. Its growth has been swift and substantial — the company reported that it supports the AI applications of over 2 million developers, a significant increase from approximately 356,000 in the previous year.
Updated, 12/24/25 at 5:40 p.m. ET, with clarification from Nvidia regarding the nature of the deal.