Nvidia, agreement with Groq worth 20 billion dollars: it is the largest acquisition in the history of the chip giant

Nvidia invested $20 billion to acquire Groqa startup specializing in chips for artificial intelligence. For the company founded in 1993 by Jen-Hsun Huang, this is the largest acquisition in its history. The chip giant, with this operation, continues its strategy of absorbing potential competitors, before they can challenge its dominance in the AI ​​semiconductor market.

The agreement

Nvidia in fact will acquire all of Groq’s assets except its cloud computing business. It will also hire Jonathan Ross, a former Google chip engineer who founded Groq in 2016, the start-up’s president Sunny Madra and other employees, under the terms of the deal announced on Christmas Eve by the two companies.

Despite this, Groq described the deal as a “non-exclusive licensing agreement” and made it known that it “will continue to operate as an independent company”. Announcing the agreement on Wednesday, December 24, the startup explained that founder and CEO Jonathan Ross, along with Sunny Madra, company president, and other senior executives “will join Nvidia to help advance and scale the licensed technology.”

Huang’s email

Nvidia’s CEO explained in an email to employees that the deal with Groq will allow the chip giant to expand its capabilities. “We plan to integrate Groq’s low-latency processors into Nvidia’s AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads,” he wrote in the email, which was seen by Financial Times.

Grok

Groq had a valuation of $6.9 billion in September, when it raised $750 million in funding. The startup claims its language processing units are up to 10 times more efficient energy-wise compared to Nvidia’s graphics processing units.

December 25, 2025 (changed December 25, 2025 | 11:01)

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