Nvidia has agreed to pay $20 billion to AI chip startup Groq to license its AI inference hardware and hire several key employees, including Groq’s founder. The deal highlights the growing competition in the AI chip market.
On December 24, Groq announced a non-exclusive licensing agreement with Nvidia to provide wider access to its high-performance, low-cost inference chips. To help develop and scale the technology, Groq’s CEO Jonathan Ross, president Sunny Madra, and other team members will join Nvidia. Simon Edwards will become Groq’s new CEO. Groq will continue to operate independently even after partnering with Nvidia.