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On December 27th, CNBC broke the news that Nvidia had snapped up the intellectual property rights and associated assets of Groq's core AI inference technology for roughly $20 billion in cash. The founders, president, and other pivotal team members of Groq are set to join Nvidia. Meanwhile, its cloud - service business, Groq Cloud, will keep running independently. This deal was structured as a 'non - exclusive licensing agreement.' The underlying motive was to sidestep antitrust scrutiny. Through this approach, Nvidia could rapidly acquire crucial technologies and talent while still giving the impression of a competitive market landscape. By incorporating Groq's low - latency processors, Nvidia aims to bridge the gaps in the inference chip segment and further cement its dominant position in the AI market.
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