This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) and Groq have reached a technology deal market reports priced at about $20 billion, according to reports.
The arrangement is framed as a non-exclusive inference technology licensing agreement rather than a straight acquisition, and Groq said the pact is aimed at scaling low-cost, high-performance AI inference globally. Under the terms, Groq’s founder Jonathan Ross, President Sunny Madra and other staff will join Nvidia, while Groq will continue as an independent company with Simon Edwards named chief executive.
The structure suggests Nvidia is paying for licensed use and personnel rather than buying Groq’s IP outright, a point analysts said could temper takeover concerns and preserve Groq’s operations.
Wall Street reactions were mixed. Bank of America analysts said the move signals recognition that inference needs specialized chips, while Bernstein flagged the $20 billion figure as large for a licensing deal.
Nvidia’s stock was up about 2% on Friday morning following the reports.
The deal could see GPUs and LPUs coexist in future AI systems, potentially reshaping inference economics in coming years.