Nvidia Set to Acquire AI Chip Innovator Groq for $20 Billion
December 25, 2025 - 11:02
In a significant move within the tech industry, Nvidia has reached an agreement to acquire Groq, a company known for its cutting-edge artificial intelligence accelerator chips, for a staggering $20 billion in cash. This acquisition marks a strategic expansion for Nvidia as it seeks to bolster its capabilities in the rapidly evolving AI landscape.
According to reports, the deal encompasses all of Groq's assets; however, it does not include the company's emerging Groq cloud business. This detail was highlighted by Alex Davis, CEO of Disruptive, which played a pivotal role in Groq's latest financing round. The acquisition underscores Nvidia's commitment to enhancing its AI offerings and maintaining its competitive edge in the semiconductor market.
As of now, neither Nvidia nor Groq has provided comments regarding the transaction. The deal reflects the increasing demand for advanced AI technologies and positions Nvidia to further capitalize on this growing sector.
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