Nvidia acquires AI chip challenger Groq for $20B, report says

Nvidia is reportedly acquiring AI chip startup Groq for $20 billion, as competition intensifies among tech companies to enhance their AI computing capabilities. While Nvidia’s GPUs have become the industry standard for AI processing, Groq has developed a distinct type of chip known as a language processing unit (LPU), which claims to be ten times faster and consume one-tenth the energy compared to traditional solutions. Groq’s CEO, Jonathan Ross, has a background in innovation, having contributed to Google’s chip development efforts. Groq has experienced rapid growth, recently raising funds at a $6.9 billion valuation and expanding its user base to over 2 million developers, up from approximately 356,000 the previous year. The acquisition would strengthen Nvidia’s position in the AI hardware market by integrating Groq’s advanced chip technology. Nvidia has not yet provided an official comment on the reported deal.