"Instead, Nvidia's buying the assets of alternative AI chipmaker Groq. Note that the company itself remains independent. but only on paper. There is also talk of a "non-exclusive license agreement," although Groq will effectively disappear from the AI chip market. What exactly is going on? The press release announcing the agreement is possibly the most concise we have ever seen for a deal worth tens of billions."
"It does contain the most important information: founder Jonathan Ross, president Sunny Madra, and "other members of the Groq team" are now Nvidia employees. Given that Groq's expertise is limited to a relatively small platform called GroqCloud, little else remains of the AI startup. New designs will be integrated and scaled up at Nvidia by former Groq staff. In other words: don't expect any future Groq chip designs to be created after today."
"Nvidia's huge revenue and market value make it easy to imagine how it could come up with $20 billion for an acquisition. The biggest stumbling block for the AI giant, which controls more than 90 percent of the chip market for the technology, is the legislative branch. For example, it was not allowed to buy Arm for $40 billion because of the potential distortion of competition."
Nvidia is acquiring Groq's assets and bringing Groq founder Jonathan Ross, president Sunny Madra, and other team members into Nvidia employment. The Groq company will remain independent on paper, but its platform and future chip designs will be absorbed, leaving little of the startup intact. Groq's specialization centers on the GroqCloud platform and the LPU concept developed by a team with TPU experience. New designs will be developed, scaled, and integrated within Nvidia, so no further Groq-branded chips are expected. Large-scale chip acquisitions face legislative and antitrust scrutiny, illustrated by Nvidia's failed Arm deal.
Read at Techzine Global
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