"It was a move that hinted Nvidia is no longer assuming its GPUs will not be the only chips useful for the next big phase of AI deployment: running already trained AI models to do everything from answering queries and generating code to analyzing an image-a process known as inference-and doing so at a huge scale."
"The Groq deal bolsters the standing of other startups building their own AI chips, including Cerebras, D-Matrix, and SambaNova-which Intel has reportedly signed a term sheet to acquire-as well as newer players like U.K.-based chip startup Fractile. It also lifts AI inference software platform startups like Etched, Fireworks, and Baseten, strengthening their valuations and making them more attractive acquisition targets in 2026, according to analysts, founders, and investors."
"Cerebras, another inference-focused chip company, also appears well positioned. Known for its dinner-plate-sized "wafer-scale" chip designed to run extremely large models on a single piece of silicon, Cerebras has filed for an IPO after a previous delay. Freund said the company has increasingly been viewed as a potential acquisition target as well. "You don't want to wait until after the IPO, when it's more expensive," he said. "From that perspective, Cerebras is sitting pretty right now.""
Nvidia licensed Groq's AI-chip technology for $20 billion and brought over most of Groq's team, including cofounder and CEO Jonathan Ross. The deal signals that Nvidia expects alternatives to GPUs for large-scale AI inference. The agreement strengthens the position of inference-focused chip startups such as Cerebras, D-Matrix, SambaNova, and newer firms like Fractile. The deal also elevates AI inference software platform companies like Etched, Fireworks, and Baseten by increasing their valuations and acquisition appeal. Analysts, founders, and investors expect higher valuations and increased acquisition activity in 2026, with D-Matrix and Cerebras specifically positioned for re-rating or takeover.
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