Nvidia signs $20 billion Groq AI chip deal
Nvidia has struck a landmark agreement to license inference technology from Groq in a transaction estimated at about $20 billion, marking the chipmaker’s largest deal tied to the current artificial intelligence infrastructure boom.
Groq said it entered a non-exclusive inference technology licensing agreement with Nvidia, and that Groq founder Jonathan Ross, and Groq president Sunny Madra, along with other team members, will join Nvidia to help scale the licensed technology. Nvidia Chief Executive Officer Jensen Huang told employees the company plans to integrate Groq’s low-latency processors into Nvidia’s “artificial intelligence factory” data center architecture to support more real-time inference workloads.
Groq will continue operating as an independent company, led by Simon Edwards, and its GroqCloud business will keep running. Nvidia’s Chief Financial Officer Colette Kress declined to comment on the transaction, Reuters reported.
Groq has positioned itself around fast, efficient inference chips, and it raised $750 million in September at a $6.9 billion valuation.
For Gulf markets pushing large-scale data center buildouts and “AI-ready” cloud capacity, the deal shows how quickly the inference layer is becoming a competitive battleground, alongside power, cooling, and chip supply planning.
