During the analyst session at the Consumer Electronics Show (CES), NVIDIA's CEO, Jensen Huang, shed some light on the rationale behind the company's monumental $20 billion deal, which was unveiled on Christmas Eve. The deal's primary objective, as Huang revealed, was to entice the key talent from Groq, a firm specializing in artificial intelligence server chip design, and to secure a license for its technology. Huang emphasized that this strategic maneuver would enable NVIDIA to venture into AI end-user devices and other emerging service domains, areas that are currently challenging to penetrate with NVIDIA's existing lineup of ultra-high-performance chips. Additionally, Huang mentioned that, based on his insights, Groq's leadership had come to the realization that the company would face significant hurdles in carving out a niche in the market, hence their eagerness to merge with NVIDIA.
