Nvidia Expands AI Capabilities by Licensing Groq’s Tech and Hiring CEO
Nvidia has entered into a non-exclusive licensing agreement with AI chip competitor Groq, hiring its founder, Jonathan Ross, along with President Sunny Madra and other employees. CNBC reported a $20 billion acquisition deal for Groq’s assets, which, if correct, would be Nvidia’s largest transaction to date. Nvidia clarified that this is not the complete acquisition of Groq as they refrained from commenting on the deal’s specifics.
The partnership comes at a crucial time as tech companies vie to enhance their AI capabilities, which rely heavily on robust computing power. Currently, Nvidia’s GPUs are regarded as the industry standard. However, Groq offers a different solution with their language processing unit (LPU) chip, which they claim can execute large language models (LLMs) ten times faster while consuming a fraction of the energy.
Groq’s leadership is notable—Jonathan Ross, known for his innovative contributions, previously helped create Google’s tensor processing unit (TPU). The company recently raised $750 million at a valuation of $6.9 billion, rapidly expanding its reach from serving about 356,000 developers last year to over 2 million today.
Updated, 12/24/25 at 5:40 p.m. ET, with clarification from Nvidia on the nature of the deal.
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