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NVIDIA has reached a $20 billion deal to license technology from AI chip startup Groq and hire its top leadership, the companies announced Wednesday.
The "acqui-hire" agreement marks the largest transaction in NVIDIA's history. Under the terms, Groq founder and CEO Jonathan Ross and President Sunny Madra will join NVIDIA, along with a significant portion of the startup’s engineering team.
By structuring the deal as a licensing agreement rather than a traditional acquisition, NVIDIA may bypass the intense antitrust scrutiny that has recently stalled major semiconductor mergers.
Groq, based in Mountain View, California, specializes in "inference" chips designed to run AI models with high speed and low latency. While NVIDIA’s hardware dominates the training of AI models, Groq’s architecture is viewed as a faster alternative for generating real-time responses.
"We will integrate Groq’s low-latency processors into the NVIDIA AI factory architecture," NVIDIA CEO Jensen Huang said in a statement.
Groq will continue to operate as an independent entity led by new CEO Simon Edwards, formerly the company's finance chief. The deal is expected to close by year-end.
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