BlockBeats News, December 25, according to CNBC, Davis, CEO of Disruptive, which led the latest round of financing for high-performance AI accelerator chip designer Groq, revealed that NVIDIA has agreed to acquire Groq for $20 billion in cash. Davis’s company has invested over $5 billion in Groq since its founding in 2016, and he stated that this deal was reached quickly.
Groq is expected to notify its investors about this transaction later on Wednesday. Davis indicated that although the acquisition includes all of Groq’s assets, its early-stage Groq cloud business is not part of this deal. This will become NVIDIA’s largest acquisition to date, surpassing its previous biggest acquisition in 2019, which was the nearly $7 billion purchase of Israeli chip designer Mellanox.
Amid surging demand for AI accelerator chips that speed up large language model inference tasks, Groq’s target revenue for this year is $5 billion.
