Nvidia acquires AI chip maker Groq for $20B, report says

Nvidia is buying Groq’s AI chip for $20 billion, according to a source report Price CNBC. The purchase is expected to be the largest for Nvidia, and Groq for its part, Nvidia is poised to become the largest chip manufacturer.

As technology companies compete to develop their AI capabilities, they need computing power, and Nvidia’s GPUs have emerged as the industry standard. But Groq has been working on another type of chip called LPU (language processing unit), which it he says he can run LLMs 10 times faster and using one-tenth of the energy. Groq CEO Jonathan Ross is known for this kind of innovation – after working at Google, he helped create it TPU (tensor processing unit), AI accelerator device.

In September, Groq earned $750 million at a cost of $6.9 billion. Its growth has been rapid and significant — the company said it powers more than 2 million AI apps, up from about 356,000 last year.

TechCrunch has reached out to Nvidia for comment.