Groq recently announced that it has entered into a non-exclusive licensing agreement with Nvidia for Groq’s inference technology. This agreement reflects a shared focus on expanding access to high-performance, low-cost inference. While the size of the deal was not officially confirmed, CNBC reported that Disruptive, the investment firm that spearheaded Groq’s most recent funding rounds, confirmed a massive $20 billion price. Alex Davis, the chief executive of Disruptive, noted that his firm invested over half a billion dollars into Groq over nearly a decade of development. Nvidia plans to pay the full sum in cash to acquire the specialized technology developed by the high-speed chip designer.
Under the terms of the comprehensive agreement, the leadership and engineering core of Groq will transition directly into the Nvidia organizational structure. This includes Groq founder Jonathan Ross and president Sunny Madra, along with a significant portion of the technical team responsible for the startup’s innovations in low-latency processing.
While the primary intellectual property and talent will move to Nvidia, Groq is slated to continue its operations as an independent entity under the new leadership of chief executive officer Simon Edwards. The company has assured its current user base that its cloud services will remain operational and unaffected by the transition of its founding members and core assets.
Nvidia chief executive officer Jensen Huang outlined the strategic necessity of the acquisition in a communication regarding the merger of the two technologies. He explained that integrating specialized low-latency processors into the existing Nvidia AI factory architecture will enable the company to expand its platform capabilities. By absorbing these specific assets, Nvidia aims to address a broader spectrum of real-time workloads and inference tasks that require the high-speed data handling capabilities for which Groq has become known. Industry analysts see this move as a preemptive strike to ensure no competitor can gain a foothold in the high-speed processing niche.
This record-breaking purchase comes at a time of extraordinary financial performance for Nvidia, which has seen its revenues climb to heights previously unseen in the hardware sector. During the third quarter of 2025, the company reported $57 billion in revenue, exceeding Wall Street analysts’ already high expectations.
The momentum is expected to carry through the end of the year, with projections for the fourth quarter suggesting even greater financial gains. The demand for artificial intelligence infrastructure remains so high that current supplies of cloud-based graphics processing units are reportedly exhausted, prompting Nvidia to seek new avenues for scaling its production and technological offerings.
The acquisition of Groq assets effectively cements Nvidia’s position as the primary architect of the global AI infrastructure. By bringing the innovators behind some of the fastest inference chips in the world into the fold, the company is positioning itself to handle the increasingly complex demands of real-time language models and automated systems.
As the Blackwell chip line continues to see massive sales and the company’s valuation remains at the top of the tech sector, this deal serves as a clear signal that Nvidia intends to use its enormous cash reserves to maintain a permanent lead over potential rivals in chip manufacturing.
