Nvidia Corporation Acquires Groq Inc Assets in $20 Billion Deal

Nvidia Corporation announced a $20 billion deal to acquire the assets of Groq Inc, a startup specializing in AI inference chip technology. Under the agreement, Nvidia Corporation entered a non-exclusive licensing arrangement for Groq Inc's technology and hired the startup's CEO and key personnel to support further development.

The acquisition follows reports that OpenAI Inc explored alternative suppliers for 10% of its inference needs, citing frustration with slow response times from Nvidia Corporation GPUs. To further improve performance, Nvidia Corporation is developing the Rubin chip platform, which incorporates Inference Context Memory Storage.

Other major industry players are similarly diversifying their hardware strategies. Microsoft Corporation is projected to spend up to $12 billion on its Maia chips in fiscal 2028 and is reportedly in talks with Broadcom for a custom AI accelerator. Meanwhile, Marvell Technology, Inc. projects 20% growth in its custom chips business for fiscal 2027.