Nvidia makes its largest purchase ever with Groq agreement

Groq, an AI chip startup, has entered into an agreement with Nvidia to help “develop and scale” Groq’s technology.

“As part of this agreement, Jonathan Ross, founder of Groq, Sunny Madra, president of Groq, and other members of the Groq team will join Nvidia to help develop and scale the licensed technology.” Groq announced in a blog post on Wednesday. “Groq will continue to operate as an independent company with Simon Edwards assuming the role of CEO. GroqCloud will continue to operate without interruption.”

That was the deal It was first reported as an exclusive with CNBC Wednesday. Alex Davis, CEO of Disruptive, the company that led Groq’s latest funding round, said Nvidia has agreed to buy Groq’s assets for $20 billion in cash, media reported.

Davis has invested more than half a billion dollars in Grok over the past nine years, CNBC reported.

“We plan to integrate low-latency Groq processors into the NVIDIA AI Factory architecture, expanding the platform to serve a broader range of AI inference and real-time workloads,” Nvidia CEO Jensen Huang wrote in an email obtained by CNBC.

This is Nvidia’s largest deal ever, according to CNBC.

The company, which produces GPU chips that power many AI models, reported higher revenues this year. Nvidia generated $57 billion in revenue during the third quarter of 2025, which is $2 million more than Wall Street analysts expected, Mashable’s Chris Taylor reported in November. The fourth quarter of 2025 is expected to be better for the company.

“Sales have been off the charts,” Huang said of the company’s Blackwell chips at the time. “Cloud GPUs are sold out.”