Jensen Huang, Nvidia\u2019s chief executive, said in an email to staff that the Groq deal would \u201cexpand the capabilities\u201d of the data centres that were built around its chips, which he calls \u201cAI factories\u201d.\u00a0<\/p>\n
\u201cWe plan to integrate Groq\u2019s 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,\u201d he wrote in the email, which was seen by the Financial Times.<\/p>\n
Despite the loss of much of its leadership team, Groq said<\/a> it \u201cwill continue to operate as an independent company\u201d. <\/p>\n Groq has focused on developing chips that can accelerate AI<\/a> \u201cinference\u201d, the process of returning responses to users\u2019 queries via chatbots such as OpenAI\u2019s ChatGPT or Google\u2019s Gemini.<\/p>\n The start-up was valued at $6.9bn as recently as September, when it raised $750mn in funding. Groq claims its language processing units are up to 10 times more energy efficient than the kinds of graphics processing units produced by Nvidia and its main rival AMD.<\/p>\n Ross helped kick-start Google\u2019s AI Tensor Processing Unit chips programme before leaving to found Groq. TPUs are widely seen as a significant asset in Google\u2019s AI arsenal, helping its Gemini chatbot catch up with ChatGPT by OpenAI, which has largely relied on Nvidia chips.<\/p>\n Several Big Tech companies \u2014 including Microsoft, Meta and Google \u2014 have struck licensing agreements with start-ups that brought in top talent and assets without making an outright acquisition, after antitrust scrutiny over the sector\u2019s dealmaking escalated in recent years. <\/p>\n \u201cAntitrust would seem to be the primary risk here, though structuring the deal as a non-exclusive licence may keep the fiction of competition alive,\u201d said Stacy Rasgon, an analyst at Bernstein Research, in a note to clients regarding Nvidia\u2019s deal with Groq.<\/p>\n Groq said its agreement with Nvidia \u201creflects a shared focus on expanding access to high-performance, low cost inference\u201d. <\/p>\n Recommended<\/p>\n The tie-up comes as many of Nvidia\u2019s biggest customers are developing their own AI processors or exploring alternatives to its GPUs, including adopting Google\u2019s TPUs.<\/p>\n The FT reported last week that Amazon was in talks to invest<\/a> more than $10bn in OpenAI as part of a deal in which the ChatGPT developer would use more of the ecommerce giant\u2019s Trainium series of AI chips.<\/p>\n Nvidia has struck a series of high-value investment deals this year, including agreeing to invest up to $100bn in OpenAI. <\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/12\/https:\/\/images.ft.com\/v3\/image\/raw\/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2Fd51ce7.jpeg\")
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