NVIDIA to acquire AI chip startup Groq for $20 billion
According to a report from CNBC, NVIDIA is buying AI chip startup Groq for $20 billion—their biggest deal ever.
This move is all about boosting NVIDIA's role in the world of advanced chips, especially since Groq's language processing units (LPUs) can run LLMs 10 times faster and using one-10th the energy of standard GPUs.
Why Groq matters right now
Groq was started by Jonathan Ross, who helped build Google's TPU, and the company has been on a serious growth streak.
Just a few months ago, they raised $750 million at a $6.9 billion valuation.
Their tech is now powering projects for over 2 million developers—up from only 356,000 last year—which really shows how much demand there is for smarter, more efficient AI hardware.
This deal signals that NVIDIA is doubling down on making AI even faster and more accessible.