Nvidia is claimed to purchase AI chip startup Groq for $20 bn in largest acquisition but| Enterprise Information
Nvidia Corp. is claimed to have agreed to purchase AI chip startup Groq for $20 billion money, in what’s probably its largest acquisition until date.
Nvidia CEO Jensen Huang. On the finish of October, Nvidia had $60.6 billion in money, up from $13.3 billion in early 2023. (AFP)
Groq is anticipated to alert its traders in regards to the Nvidia deal later within the day, CNBC reported on Wednesday, citing Disruptive CEO Alex Davis who mentioned “the deal got here collectively shortly”. His firm led Groq’s newest funding spherical that greater than doubled its valuation to $6.9 billion. The acquisition contains all of Groq’s belongings, however its nascent cloud enterprise shouldn’t be a part of the deal.
Based in 2016, Groq designs AI inference chips to optimise pre-trained giant language fashions. Its Founder CEO Jonathan Ross was one of many creators of Google’s tensor processing unit—a customized AI chip seen as a substitute for Nvidia’s pricier graphics processing models.
In September 2025, Groq raised $750 million from traders together with Disruptive, Samsung, Cisco, Altimeter and 1789 Capital, the place Donald Trump Jr is associate. The funding greater than doubled the Mountain View, California-based firm’s valuation to $6.9 billion from $2.8 billion in August 2024.
Groq was not pursuing a sale when it was approached by Nvidia.
For Nvidia, Groq—to not be confused with Elon Musk-led xAI’s chatbot Grok—would mark the most important acqusition since its $7-billion deal for Israeli chipmaker Mellanox Applied sciences in 2019. Since then, the corporate led by Jensen Huang has introduced its intention to speculate as much as $100 billion in OpenAI, which has dedicated to deploy not less than 10 GW of Nvidia merchandise.
On the finish of October, Nvidia had $60.6 billion in money, up from $13.3 billion in early 2023. Groq is focusing on income of $500 million this 12 months.
