Thursday, December 25, 2025

AI HW: Nvidia += Groq - $20B

Nvidia trying to compete with Google's TPU?
LLM-first design, not GPU evolution.

 Nvidia buying AI chip startup Groq for about $20 billion, biggest deal

  • Nvidia is making its largest purchase ever, acquiring assets from nine-year-old chip startup Groq for about $20 billion.
  • The company was founded by creators of Google’s tensor processing unit, or TPU, which competes with Nvidia for artificial intelligence workloads.
  • Groq, which was valued at $6.9 billion in a financing round in September, framed the deal as a “non-exclusive licensing agreement,” with its CEO and other senior leaders joining Nvidia.

Groq's initial name for their ASIC was the Tensor Streaming Processor (TSP),
but later rebranded the TSP as the Language Processing Unit (LPU)

In December 2025, Nvidia reportedly agreed to acquire Groq for US$20 billion in cash, in a deal that would exclude the company's nascent GroqCloud business and, if completed, would be Nvidia's largest acquisition to date.




Breaking: NVIDIA just bought Groq for $20 Billion! - YouTube

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