Nvidia's $20 billion acquisition of Groq and reaches a technology licensing and team integration agreement to drive shares higher
Nvidia will acquire Groq, a high-performance artificial intelligence acceleration chip design company, for about $20 billion in cash, making it its largest acquisition deal ever. Groq was founded by the former Google TPU core team and focuses on the design of high-performance AI accelerator chips. At the same time, Nvidia and Groq reached a non-exclusive reasoning technology licensing agreement. Groq's founder and senior management team will join Nvidia to help promote the research and development and application of high-performance and low-cost reasoning technology and consolidate Nvidia's leading position in the field of AI reasoning. The deal could face regulatory scrutiny. Nvidia's opening stock price rose more than 1%, confirming that it has reached a non-exclusive technology licensing agreement with AI chip startup Groq, and recruited engineering talents from Groq, driving the stock price up. This cooperation marks the arrival of the era of AI reasoning, and at the same time attracts market attention to the challenges that Nvidia's high gross profit capabilities may face.