On December 25th, as reported by CNBC, Davis, the CEO of Disruptive (the firm heading Groq's latest funding round; Disruptive is also a designer of high - performance AI acceleration chips), disclosed that Nvidia has reached an agreement to acquire Groq in an all - cash deal worth $20 billion. Since its inception in 2016, Groq has received a cumulative investment of over $500 million from Disruptive.

Davis noted that the acquisition process is moving forward at a brisk pace. Groq is anticipated to send out a transaction notice to its investors later on Wednesday. He also mentioned that while the acquisition encompasses all of Groq's assets, its nascent cloud business is not part of the deal.

This acquisition will be Nvidia's largest to date, eclipsing its previous record - breaking deal. In 2019, Nvidia acquired the Israeli chip designer Mellanox for nearly $7 billion. In the current market, with the skyrocketing demand for AI acceleration chips that can speed up large - language - model inference tasks, Groq has set an ambitious target of achieving $500 million in revenue this year.