Nvidia to License Groq Tech, Hire Execs in Big Tech Deal Push

Nvidia has struck a deal to license chip technology from AI startup Groq and bring its top leadership on board, marking another example of Big Tech’s growing preference for talent-and-technology tie-ups over outright acquisitions.

Groq said Nvidia has agreed to a non-exclusive licence for its chip technology. At the same time, Groq founder and CEO Jonathan Ross, along with President Sunny Madra and several engineers, will join Nvidia. Ross previously played a key role in launching Google’s AI chip programme. A person familiar with the matter confirmed the agreement, though financial terms were not disclosed.

The deal highlights Nvidia’s push to strengthen its position in AI inference, an area where trained AI models respond to user queries. While Nvidia dominates AI model training, competition in inference is intensifying from rivals. These include AMD and startups such as Groq and Cerebras Systems.

Groq clarified that it will continue to operate independently, with Simon Edwards as CEO. Moreover, its cloud business will remain active. This came after reports suggested Nvidia was in talks to acquire Groq for $20 billion, which neither company commented on.

Similar structures have become common across Big Tech. Microsoft, Meta, Amazon, and Nvidia have all used licensing deals or executive hires to access startup innovation without full acquisitions. This trend has drawn regulatory attention but, so far, avoided major rollbacks.

Groq, which focuses on inference chips that use on-chip SRAM rather than external memory, more than doubled its valuation to $6.9 billion. This increase followed a $750 million funding round in September. The approach improves speed but limits model size. It puts Groq in direct competition with Cerebras, which is reportedly planning an IPO next year.

Nvidia CEO Jensen Huang recently reiterated confidence that Nvidia will retain its leadership as AI demand shifts from training to inference. This transition is reshaping the competitive landscape.

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