NVIDIA acquires Groq assets to expand presence in AI
NVIDIA announced the acquisition of assets from Groq, a developer of high-performance chips for artificial intelligence, for $20 billion. This is the largest deal in the company’s history, surpassing the purchase of Mellanox in 2019.
According to data from CNBC, NVIDIA will integrate Groq’s technology, excluding its cloud business GroqCloud, and will recruit several senior Groq executives. Founder Jonathan Ross, President Sunny Madra, and other top managers will join NVIDIA to work on scaling licensed technologies.
NVIDIA CEO Jensen Huang, in his letter to employees, emphasized that the company is not acquiring Groq as a legal entity, but only licensing its intellectual property. He expressed the intention to integrate Groq’s low-latency processors into the NVIDIA AI Factory architecture to improve inference and real-time data processing.
After the deal is completed, Groq will continue to operate as an independent company under the leadership of the new CEO Simon Edwards. GroqCloud will function unchanged, continuing its activities without interruption.
Earlier, in September 2025, Groq raised $750 million in investments from leading companies such as BlackRock, Neuberger Berman, Samsung, Cisco, Altimeter, and 1789 Capital. Experts believe the current deal will significantly enhance NVIDIA’s leadership position in the field of artificial intelligence, intensifying competition with other giants such as Alphabet and OpenAI.
| Company | Deal Amount, $ billion | Year |
|---|---|---|
| NVIDIA-Groq | 20 | 2025 |
| NVIDIA-Mellanox | 7 | 2019 |
