NVIDIA, a behemoth in the AI chip industry, has clinched a momentous agreement. This deal involves acquiring certain core assets of Groq, a firm specializing in designing high - performance AI acceleration chips, for roughly $20 billion in cash. If the transaction is consummated successfully, it will stand as NVIDIA's largest acquisition ever, further highlighting its unwavering resolve to cement its dominant foothold in the artificial intelligence hardware realm.

According to Groq's official press release, the two entities have forged a non - exclusive licensing pact. Under this agreement, NVIDIA will secure a license for Groq's inference technology. As part and parcel of the deal, Jonathan Ross, the founder and CEO of Groq, along with Sunny Madra, the president, and other pivotal executives, will become part of the NVIDIA team.

In the meantime, Groq stressed that the company will persist in operating as an independent entity. Its cloud computing business, GroqCloud, is not part of this transaction and will continue its operations without any disruptions.