NVIDIA is acquiring the assets of high-performance AI chip developer Groq for $20 billion. This is the largest deal in the company’s history, surpassing the purchase of Mellanox in 2019 for nearly $7 billion.
This was reported by CNBC.
According to the publication, NVIDIA will acquire all of Groq’s assets, with the exception of the GroqCloud cloud business.
As part of the deal, Groq founder and CEO Jonathan Ross, President Sunny Madra, and other senior executives will join Nvidia to help scale the licensed technologies.
In a letter to employees, Nvidia CEO Jensen Huang explained that the company is not acquiring Groq as a legal entity, but is only licensing its intellectual property and hiring its employees.
“We plan to integrate Groq’s low-latency processors into the NVIDIA AI Factory architecture to expand inference and real-time data processing capabilities,” Huang said.
Groq will continue to operate as an independent company under the leadership of new CEO Simon Edwards, who previously served as CFO.
GroqCloud’s business will continue without interruption.
As a reminder, in September 2025, Groq raised $750 million in investments. Investors included BlackRock, Neuberger Berman, Samsung, Cisco, Altimeter, and 1789 Capital.
Read more: Alphabet, OpenAI, and NVIDIA. What were the biggest AI deals in 2025?
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