Nvidia is acquiring the assets of AI chip startup Groq for approximately $20 billion in the largest deal in its history, UNN reports with reference to CNBC.
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"Nvidia is making its largest acquisition in history, buying the assets of nine-year-old chip startup Groq for approximately $20 billion," the report says.
The company was founded by the creators of Google's Tensor Processing Unit (TPU), which competes with Nvidia in the field of artificial intelligence tasks.
Groq, valued at $6.9 billion in September, described the deal as a "non-exclusive licensing agreement" under which its CEO and other senior executives will join Nvidia.
This deal is Nvidia's largest acquisition in history. The chipmaker's largest acquisition to date occurred in 2019 when it bought Israeli chip developer Mellanox for nearly $7 billion. At the end of October, Nvidia had $60.6 billion in cash and short-term investments, which is $13.3 billion more than at the beginning of 2023.
In an email to employees obtained by CNBC, Nvidia CEO Jensen Huang said the deal would expand Nvidia's capabilities.