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

4 weeks 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

TSMC posts record profits on AI chip boom

TSMC posts record Q4 profit, driven by strong chip demand, exceeding predictions and signaling market dominance.

Published

4 days ago

January 16, 2026

Harvey Vargas

TSMC posts record Q4 profit, driven by strong chip demand, exceeding predictions and signaling market dominance.

Taiwan Semiconductor Manufacturing Company (TSMC) has posted a record net profit for the fourth quarter, driven by strong demand for advanced chips.

Net profit surged 35% year-on-year, exceeding analyst expectations and signalling a dominant position in the semiconductor market.

Quarterly revenue also rose 20.5% compared to last year, supported by robust sales in AI and high-performance computing segments. The company’s success reflects the growing global appetite for cutting-edge semiconductor technology.

Looking ahead, TSMC plans to ramp up capital expenditure, projecting investments of up to $56 billion in 2026. The positive results have sparked an upbeat reaction across global markets, highlighting TSMC’s influence in the tech sector.

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#TSMC #Semiconductors #AIChips #TechNews #HighPerformanceComputing #StockMarket #QuarterlyEarnings #TechInvesting

Tech

X restricts Grok AI as global backlash grows

X restricts Grok AI from creating sexualized images amid global backlash and regulatory concerns, aligning with UK guidelines.

Published

5 days ago

January 15, 2026

Harvey Vargas

X restricts Grok AI from creating sexualized images amid global backlash and regulatory concerns, aligning with UK guidelines.

X has announced new restrictions on its Grok AI chatbot, preventing it from generating sexualized images of women amid mounting criticism and regulatory scrutiny worldwide.

The move comes after concerns over non-consensual image manipulation sparked widespread backlash from users, advocacy groups, and authorities.

UK Prime Minister Keir Starmer confirmed that the platform’s latest changes align with British law, as Ofcom launches a formal investigation to determine whether X has violated the Online Safety Act.

Regulators are closely monitoring the situation, highlighting growing global concerns about the ethical use of AI in image generation. Critics have argued that X’s initial measures were insufficient and did not adequately address the risks associated with sexualized AI content.

The controversy has also prompted action in Southeast Asia. Malaysia and Indonesia have blocked access to Grok entirely, citing the platform’s potential to generate inappropriate content.

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#GrokAI #XPlatform #AIRegulation #OnlineSafety #KeirStarmer #AIControversy #TechNews #DigitalEthics

Tech

AI drives memory prices higher as SK hynix and TSMC expand

Explore the rising global memory market driven by AI demand and hear insights from Brad Gastwirth on industry trends.

Published

6 days ago

January 14, 2026

Harvey Vargas

Explore the rising global memory market driven by AI demand and hear insights from Brad Gastwirth on industry trends.

The global memory market is on the rise, with prices climbing steadily thanks to booming AI infrastructure demand.

Companies like SK hynix and TSMC are investing heavily in advanced packaging and new facilities to meet this unprecedented growth.

We speak with Brad Gastwirth from Circular Technologies about the forces behind this upward momentum. From the difference between AI-driven and consumer-driven demand to the increasing memory requirements per AI system, Brad breaks down the trends shaping the industry.

We also explore the implications of lean DRAM and NAND inventories, disciplined supply growth, and the challenges of expanding packaging capacity versus wafer fabrication. Tune in to understand why incremental demand surprises can have a huge impact on memory pricing.

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#AIMemory #SKHynix #TSMC #TechInvesting #MemoryMarket #AIInfrastructure #Semiconductors #TickerNews