The chipmaker’s most costly acquisition was Nvidia’s $20 billion purchase of Groq.
According to reports, Nvidia is buying the assets of Groq, a company that designs artificial intelligence (AI) chips. According to the report, the chipmaker is paying $20 billion (approximately Rs. 1.79 lakh crore) to acquire the AI inference technology assets. Groq raised $750 million (approximately Rs. 6,740 crore) at its latest valuation of $6.9 billion (about Rs. 61,986 crore), which is almost three times the amount. Groq made a vague announcement about the transaction, but it omitted any information on the assets being bought or the amount involved.
According to reports, Nvidia buys Groq’s assets
Groq and Nvidia have signed a deal that permits the former to purchase assets from the latter in an all-cash transaction, according to CNBC. The CEO of Disruptive, Alex Davis, was referenced in the article. Notably, David oversaw a $750 million (approximately Rs. 6,740 crore) fundraising round for Groq in September.
If accurate, this will be Nvidia’s most costly acquisition to date, costing $20 billion (approximately Rs. 1.79 lakh crore). The previous record was set in 2019 when the firm paid around $7 billion (roughly Rs. 62,870 crore) to acquire Israeli chip creator Mellanox. Interestingly, both Mellanox and Groq are fabless businesses, which means that although they develop chipsets, they lack the infrastructure necessary to manufacture them.
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Groq announced the deal in a press post on Christmas Eve. However, the business characterized to it as “a non-exclusive licensing agreement” for its inference technology rather than a purchase transaction. Jonathan Ross, the company’s founder, Sunny Madra, its president, and a number of other individuals will join Nvidia as part of the agreement.
Notably, the firm made clear that GroqCloud, its cloud division, is not included in the transaction and would continue to operate independently under Chief Financial Officer Simon Edwards, who will now hold the position of CEO.
Separately, CNBC reported that Nvidia CEO Jensen Huang thinks the transaction will increase the chipmaker’s capabilities, citing an email to the team that the magazine was able to receive. According to reports, Huang also disclosed that Nvidia’s AI factory design will use Groq’s low-latency processors in order to broaden the platform. The platform is expected to support a wide spectrum of AI inference and real-time applications with this integration.
Huang allegedly stated in the email, “We are not acquiring Groq as a company, even though we are adding talented employees to our ranks and licensing Groq’s IP.”
𝑭𝒐𝒓 𝑹𝒆𝒈𝒖𝒍𝒂𝒓 & 𝑭𝒂𝒔𝒕𝒆𝒔𝒕 𝑻𝒆𝒄𝒉 𝑵𝒆𝒘𝒔 𝒂𝒏𝒅 𝑫𝒆𝒂𝒍𝒔&𝑶𝒇𝒇𝒆𝒓𝒔, 𝑭𝒐𝒍𝒍𝒐𝒘 𝑻𝑬𝑪𝑯𝑵𝑶𝑿𝑴𝑨𝑹𝑻 𝒐𝒏 𝑻𝒘𝒊𝒕𝒕𝒆𝒓, 𝑭𝒂𝒄𝒆𝒃𝒐𝒐𝒌, 𝑰𝒏𝒔𝒕𝒂𝒈𝒓𝒂𝒎, 𝑮𝒐𝒐𝒈𝒍𝒆 𝑵𝒆𝒘𝒔 𝒂𝒏𝒅 𝑺𝒖𝒃𝒔𝒄𝒓𝒊𝒃𝒆 𝑯𝒆𝒓𝒆 𝑵𝒐𝒘. 𝑩𝒚 𝑺𝒖𝒃𝒔𝒄𝒓𝒊𝒃𝒊𝒏𝒈 𝒀𝒐𝒖 𝑾𝒊𝒍𝒍 𝑮𝒆𝒕 𝑶𝒖𝒓 𝑫𝒂𝒊𝒍𝒚 𝑫𝒊𝒈𝒆𝒔𝒕 𝑯𝒆𝒂𝒅𝒍𝒊𝒏𝒆𝒔 𝑬𝒗𝒆𝒓𝒚 𝑴𝒐𝒓𝒏𝒊𝒏𝒈 𝑫𝒊𝒓𝒆𝒄𝒕𝒍𝒚 𝑰𝒏 𝒀𝒐𝒖𝒓 𝑬𝒎𝒂𝒊𝒍 𝑰𝒏𝒃𝒐𝒙. 𝗝𝗼𝗶𝗻 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗻𝗲𝗹𝘀 𝗙𝗼𝗿 𝗡𝗲𝘄𝘀 & 𝗥𝗲𝗮𝗹 𝗧𝗶𝗺𝗲 𝗗𝗲𝗮𝗹 𝗔𝗹𝗲𝗿𝘁𝘀.