CNBC Reports $29 Billion Acquisition
Groq Announces "Technology Licensing Agreement"
Nvidia has agreed to acquire the assets of AI accelerator chip startup Groq for approximately $20 billion. This marks the largest deal in Nvidia's history.
On the 24th (local time), Groq announced on its company blog, "We have entered into a non-exclusive licensing agreement with Nvidia regarding Groq's inference technology," adding, "This agreement reflects our shared goal of expanding access to high-performance, low-cost inference technology."
The company has primarily designed AI accelerator chips used to speed up inference tasks for large language models. This year, Groq set a target of $500 million in annual revenue.
Groq stated, "As part of this agreement, Groq founder Jonathan Ross, President Sunny Madra, and other team members will join Nvidia to support the advancement and expansion of the licensed technology."
The company also added, "Groq will continue to operate as an independent entity, with Simon Edwards taking on the role of Chief Executive Officer (CEO). The Groq cloud business will continue to operate without disruption."
In its official announcement, Groq did not disclose the transaction amount related to this deal with Nvidia. However, prior to Groq's announcement, CNBC reported that Nvidia had agreed to acquire Groq for $20 billion in cash.
CNBC, citing Alex Davis, CEO of Disruptive, who led the startup's latest funding round, described it as "the largest acquisition in Nvidia's history." Previously, Nvidia's largest merger and acquisition was the $6.9 billion acquisition of Israeli semiconductor company Mellanox in 2019-2020.
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