Post by : Meena Ariff

Nvidia has entered into a strategic agreement with artificial intelligence startup Groq, licensing its chip technology while also bringing Groq’s founder and CEO, Jonathan Ross, into the company. The move highlights Nvidia’s growing focus on strengthening its role in AI inference, a rapidly expanding segment of the AI market.

Rather than acquiring Groq outright, Nvidia opted for a non-exclusive licensing deal, a structure increasingly used by major tech firms to gain access to advanced technology and top talent without triggering regulatory hurdles. Along with Ross, Groq President Sunny Madra and several senior engineers will also join Nvidia.

Groq is known for its work in AI inference, which involves delivering fast responses from already-trained AI models. While Nvidia leads the market for AI training chips, inference has become a competitive space with challenges from established rivals and emerging startups.

Despite reports suggesting a possible multibillion-dollar acquisition, Groq confirmed it will continue operating independently. Simon Edwards has been appointed as the company’s new CEO, and its cloud-based services will remain active.

Groq has seen rapid growth, with its valuation more than doubling over the past year following a major funding round. Its chip designs use on-chip memory rather than external high-bandwidth memory, helping overcome supply shortages and deliver faster AI responses, though with limits on model size.

Industry observers note that such licensing-and-hiring deals are becoming common across the tech sector as companies race to secure talent and technology in artificial intelligence, while carefully navigating regulatory scrutiny.

Nvidia’s leadership has repeatedly emphasized confidence in maintaining its market dominance as AI demand shifts from training systems toward real-time inference, making the Groq partnership a timely and strategic move.

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