"On Christmas Eve, Nvidia shocked the tech world with the announcement that it is entering into a non-exclusive licensing agreement with Groq, a company that designs custom chips for AI inference. While terms were not disclosed, many criticized the deal for leaving employees out in the cold. Groq's founder and CEO, Jonathan Ross, along with top engineering staff, will join Nvidia."
"Here's why it's unsettling to some: For decades in Silicon Valley, early employees have worked grueling hours and accepted lower salaries in the hope that they will share in the riches should their startup eventually get acquired or go public. Now, traditional acquisitions have become rarer because of the time and uncertainty of getting regulatory approval. As a result, companies like Nvidia have been getting creative, using licensing deals to skirt regulators and snap up key talent quickly."
On Christmas Eve Nvidia announced a non-exclusive licensing agreement with Groq, a custom AI-inference chip designer. Terms were undisclosed. Groq's founder and CEO Jonathan Ross, plus top engineering staff, will join Nvidia while Groq remains an independent company without its key leadership team. The startup was valued at $6.9 billion three months earlier. Many on X criticized the arrangement for leaving employees behind. Traditional acquisitions have become rarer because regulatory approval can be time-consuming and uncertain. As a result, large firms are using licensing deals to acquire talent and technology quickly, and similar AI deals have proliferated in recent years.
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