Groq Teams Up with NVIDIA in $20 Billion AI Deal – Could This Be NVIDIA’s Biggest Move Ever

California Start-up Company Groq Team Up with NVIDIA on Expanding AI Inference Technology

Groq, a startup specializing in artificial intelligence inference using AI algorithms and inference with AI in deep neural networks, has just announced a strategic licensing partnership with NVIDIA Corporation itself, a famous global GPU technology developer and manufacturer.

Such a license agreement is non-exclusive in its nature and has one major aim: to provide the entire world with affordable and highly efficient inference of artificial intelligence.

Groq leadership to join NVIDIA, still an independent company

According to the deal, Groq founder Jonathan Ross and the company’s president, Sunny Madra, will join NVIDIA’s staff, along with various members from Groq. Groq will remain an independent entity despite the collaboration between the two companies. The new CEO at Groq will be Simon Edwards.

“This deal might be the largest one NVIDIA has ever made in history.”

According to reports though the figures were not made public, the news is that the possible acquisition could be worth about $20 billion, and it could be NVIDIA’s biggest purchase ever, surpassing the 2019 purchase of Mellanox for about $7 billion.

Integration with NVIDIA AI Factory Architecture

According to press coverage, Jensen Huang, CEO at NVIDIA, announced that the company’s AI factory infrastructure would be coupled with Groq’s low-latency processor solutions to perform a wider range of AI inference tasks.

Groq has sought to reassure its customers that its artificial intelligence inference service solution, GroqCloud, will remain uninterrupted in its transition.

Groq: From Startup to AI Inference Leader

Founded in 2016 by former engineers, including Jonathan Ross, one of the minds behind Google’s Tensor Processing Unit (TPU), Groq primarily tackles AI inference—the process a trained AI system uses when responding to user input. A rival of NVIDIA in this area would be other developers of chips used for AI and inference platforms.

As reported in its most current round of funding, Groq was valued at 6.9 billion dollars in September, securing 750 million dollars in investment from BlackRock, Neuberger Berman, Samsung, Cisco, Altimeter, and 1789 Capital.

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