Tech

Nvidia signs $20 billion deal with Groq for AI tech

Nvidia strikes $20 billion deal to license Groq’s AI tech and hire executives, boosting its position in AI inference market

Published

2 months ago

December 26, 2025

Harvey Vargas

Nvidia strikes $20 billion deal to license Groq’s AI tech and hire executives, boosting its position in AI inference market

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.

Tech

Apple set to unveil budget iPhone 17e, new iPads and low-cost MacBook

Apple’s Tim Cook announces major product reveals this week, highlighting budget iPhone 17e, new iPads, and low-cost MacBook.

Published

4 days ago

February 27, 2026

Harvey Vargas

Apple’s Tim Cook announces major product reveals this week, highlighting budget iPhone 17e, new iPads, and low-cost MacBook.

Apple Inc. CEO Tim Cook has confirmed a major week of product announcements kicking off Monday morning, building momentum toward a global “Apple Experience” event across New York, London and Shanghai. The tech giant is expected to spread its reveals across three days, fuelling speculation about its biggest refresh cycle yet.

Leading the buzz is the rumoured budget-friendly iPhone 17e, signalling Apple’s push to capture more price-conscious consumers without sacrificing performance. Two new iPads powered by advanced chips are also tipped to headline the lineup, pointing to stronger AI capabilities and faster processing speeds.

Rounding out the expected reveals is a low-cost 12.9-inch MacBook that’s already generating serious interest, alongside updated MacBook Pro models and a refreshed Mac Studio. It’s shaping up to be one of Apple’s most significant multi-product launches in recent years.

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#Apple #TimCook #iPhone17e #AppleEvent #TechNews #iPad #MacBook #Innovation

Tech

Nvidia posts record revenue as AI fears shake investors

Nvidia’s £68.1 billion revenue, up 73%, raises investor concerns about AI’s impact and tech customers’ financial health.

Published

4 days ago

February 27, 2026

Harvey Vargas

Nvidia’s £68.1 billion revenue, up 73%, raises investor concerns about AI’s impact and tech customers’ financial health.

Nvidia posted strong quarterly earnings, but Wall Street remained unimpressed, causing shares to fall 5%. Analysts point to investor concerns over AI dominance and a stalled $100 billion deal with OpenAI.

Experts discuss what factors in the earnings report failed to meet market expectations, including revenue projections and details around the Vera Rubin chip architecture. Competition from alternative chipmakers and scrutiny of hyperscaler cash flows are also shaping investor sentiment.

Despite recent setbacks, analysts remain cautiously bullish on Nvidia, highlighting long-term AI potential and the company’s dominant position in the chip market.

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Tech

Meta launches lawsuits over alleged scam advertising operations

Meta targets scam advertising networks in Brazil, China, and Vietnam, intensifying its crackdown on scams across its platforms.

Published

4 days ago

February 27, 2026

Harvey Vargas

Meta targets scam advertising networks in Brazil, China, and Vietnam, intensifying its crackdown on scams across its platforms.

Social media giant Meta has launched aggressive legal action targeting alleged scam operations using its platforms. The company has filed lawsuits against four advertising networks based in Brazil, China and Vietnam.

Meta has also issued cease and desist letters to eight marketing consultants accused of helping clients bypass the platform’s enforcement systems. The move signals a tougher stance on organised scam activity operating at scale.

While no criminal charges have been laid, Meta says it is doubling down on efforts to protect users and restore trust across its platforms as scam activity continues to rise globally.

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