In Short:
– Nvidia has signed a $20 billion deal with AI chip startup Groq to enhance its AI inference capabilities.
– Groq will remain independent while Nvidia acquires technology and talent, excluding Groq’s cloud business.

Nvidia has made waves in the AI world with a complex $20 billion agreement with AI chip startup Groq, marking the chip giant’s largest deal to date. Unlike a traditional acquisition, Nvidia will license Groq’s AI inference technology while hiring key executives, including founder Jonathan Ross and president Sunny Madra, as Groq continues to operate independently. This arrangement highlights a growing Silicon Valley trend in which major tech companies selectively acquire intellectual property and top talent without fully integrating startups.

While CNBC reported the deal’s $20 billion valuation, neither Nvidia nor Groq confirmed financial terms. Nvidia CEO Jensen Huang clarified that the company is “adding talented employees to our ranks and licensing Groq’s IP, but we are not acquiring Groq as a company.” Groq described the transaction as a “non-exclusive licensing agreement” for its inference technology. The startup’s cloud business will remain under the leadership of new CEO Simon Edwards, formerly Groq’s CFO.

Increasing competition

The deal strategically targets AI inference — the process where trained models respond to user queries — a sector where Nvidia faces increasing competition. Groq’s Language Processing Unit reportedly executes large language models ten times faster while consuming one-tenth the energy of traditional GPUs. With Jonathan Ross, who previously helped develop Google’s Tensor Processing Unit, joining Nvidia, the company strengthens its expertise across the AI stack. Huang confirmed plans to integrate Groq’s low-latency processors into Nvidia’s AI factory architecture, expanding its capabilities for real-time AI workloads.

This $20 billion deal eclipses Nvidia’s previous largest acquisition, the $6.9 billion purchase of Mellanox in 2019. Groq itself raised $750 million in September at a $6.9 billion valuation, with investors including BlackRock, Samsung, Cisco, and 1789 Capital. The arrangement also reflects a broader shift in Silicon Valley: companies like Google, Amazon, and Microsoft have increasingly opted for “acqui-hire” deals that license technology and recruit founders while leaving the original companies structurally intact.

With more than $60 billion in cash reserves, Nvidia is clearly doubling down on its aggressive expansion strategy across the AI ecosystem. By combining top-tier talent, breakthrough technology, and strategic IP licensing, Nvidia is positioning itself to dominate the AI inference market and maintain its leadership in the global AI race.

In Short:
– Google Cloud and Palo Alto Networks have partnered on a nearly $10 billion security services deal.
– The multiyear contract will integrate Palo Alto’s security platform with Google Cloud’s AI capabilities.

Alphabet’s Google Cloud and Palo Alto Networks have announced a partnership valued at nearly $10 billion. This agreement marks the largest security services deal for Google Cloud as enterprises increase efforts to protect AI infrastructure amid rising cyber threats.The multiyear contract involves Palo Alto moving key internal workloads to Google Cloud and creating new AI-driven security solutions. While executives refrained from commenting on financial specifics, the deal enhances a relationship formed in 2018.

Research from Palo Alto’s December 2025 State of Cloud Report revealed that 99% of surveyed companies faced at least one attack on their AI infrastructure in the past year. The collaboration aims to integrate Palo Alto’s Prisma AIRS security platform with Google Cloud’s AI capabilities, including Vertex AI and Agent Engine, to enhance protection for AI workloads.

AI Security Demand

Matt Renner, Google Cloud’s chief revenue officer, indicated that the surge in AI has created significant security demand. BJ Jenkins, president at Palo Alto, likened the current threat environment to those seen during the early growth of cloud computing.

The investment will see Palo Alto’s products migrated to Google’s platform, while also funding new AI-focused services. The companies have launched 75 joint integrations, achieving $2 billion in sales via the Google Cloud Marketplace.

The agreement also highlights broader cybersecurity strategies from both firms. Google is pursuing a $32 billion acquisition of Wiz, awaiting regulatory approval. Meanwhile, Palo Alto has plans to acquire observability platform Chronosphere for $3.35 billion.

Renner noted that this collaboration positions Google Cloud advantageously as AI continues to reshape the competitive landscape against rivals like Amazon and Microsoft. Furthermore, Palo Alto CEO Nikesh Arora’s previous experience at Google enhances the partnership’s potential.

In Short:
– Ukraine increased drone production to 950 daily, intercepting 1,500 enemy drones recently during ongoing Russian attacks.
– New interceptors, costing $1,000-$5,000, highlight a shift in defence economics, with 68% success rates reported.

Ukraine has significantly increased production of low-cost interceptor drones, reaching almost 950 units daily. This surge comes as Russian attacks persist, targeting Ukrainian cities and infrastructure. The drones, costing around $1,000 each, have successfully downed over 1,500 enemy drones recently, preserving more expensive missiles for higher threats.On December 21-22, Russian forces launched 86 attack drones, and Ukrainian air defenses intercepted 58 of them. This attack pattern has escalated throughout 2025, with Russia deploying about 5,500 Shahed-type drones monthly against Ukraine.

The interceptors evolved from prototypes to mass production within months in 2025, marking a significant shift in modern warfare. Ukraine’s Defense Ministry collaborates with over 10 manufacturers producing drones designed to counter Shahed-type unmanned aerial vehicles.

New Technology

The Sting, developed by the volunteer initiative Wild Hornets, illustrates this advancement. Resembling a flying thermos and built on a 17-inch frame, the quadcopter can reach speeds of 315 kilometers per hour and engage targets from 25 kilometers away. Operators control the drones using virtual reality goggles, impacting enemy aircraft mid-flight.

“Every destroyed target is something that did not hit our homes or power plants,” said a commander with the call sign Loi.

The financial aspects favour defenders, reversing traditional air defence economics. Ukrainian interceptors range from $1,000 to $5,000, while Russian Shahed drones cost around $35,000. President Volodymyr Zelenskyy mentioned that the success rate for interceptor drones is currently 68 percent.

“Cheap interceptor drones have become critical, warranting their status as a cornerstone of modern counter-unmanned aerial systems,” stated defense analyst Federico Borsari. NATO has observed successful Sting demonstrations, while the European Union plans a “drone wall” along its eastern border, expected to be operational by late 2027.