Groq Partners with NVIDIA in $20 Billion Licensing Deal

Groq is an AI infrastructure company renowned for its record-breaking speed in running Large Language Models. By specializing in the inference stage of the AI lifecycle, Groq utilizes its custom-built Language Processing Unit architecture to deliver near-instantaneous responses. This "software-first" hardware approach optimizes linear algebra processing, setting a new standard for low-latency AI performance.

Groq has entered into a licensing partnership with NVIDIA, reportedly valued at approximately $20 billion, combining technology licensing and key talent acquisition. Founder Jonathan Ross and senior executives will join NVIDIA to integrate Groq's specialized inference architecture into NVIDIA's ecosystem, while Groq continues operating independently under new CEO Simon Edwards. The partnership accelerates next-generation AI infrastructure as demand for low-latency, large-scale inference intensifies across data centers and cloud platforms.

Groq, headquartered in Mountain View, California, United States, was founded in 2016 by Jonathan Ross. In 2021, the company joined the unicorn club. “We plan to integrate Groq’s low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads,” said NVIDIA co-founder and CEO Jensen Huang. “While we are adding talented employees to our ranks and licensing Groq’s IP, we are not acquiring Groq as a company.”