Mentioned:
Nvidia is putting up tens of billions of dollars for a private chip company in America. But, why?
What’s happening:
- Nvidia (NASDAQ: NVDA) has struck a $20B USD licensing and asset purchase deal with artificial intelligence hardware company Groq
Why it matters:
- This is the single largest cash deal Nvidia has ever done to acquire licenses and assets from a private artificial intelligence company
Going deeper:
- Nvidia will get most of Groq’s artificial intelligence chip assets as well as a non-exclusive license to Groq’s low latency LPU inference intellectual property as part of the new deal
- Groq’s founding team and shareholders will receive $20B USD in cash and continue to operate their GroqCloud business independently
The intrigue:
- Groq’s founder Jonathan Ross will join Nvidia as part of the new deal alongside of many of Groq’s leading engineers
