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NVIDIA invests another $20 billion; is the Groq deal the dawn of decentralized AI?
NVIDIA recently agreed to spend approximately $20 billion to acquire the core assets of AI chip startup Groq. This not only becomes one of NVIDIA's largest deals in history but also once again confirms its consistent strategy of preemptively "acquiring" potential competitors before they grow into threats. Although the transaction is described as a non-exclusive licensing agreement rather than a direct acquisition, the market generally perceives its actual effect as equivalent to deep integration.
Just three months ago, Groq completed a $750 million funding round, reaching a valuation of $6.9 billion, with a significant increase in valuation in a short period. The funding lineup included BlackRock, Samsung, Cisco, and 1789 Capital, which has close ties to former President Donald Trump. In this deal, Groq's cloud computing business will be retained, while its core technology and key talent will be integrated into the NVIDIA ecosystem. Groq's founder and CEO, Jonathan Ross (one of the core designers of Google TPU), will join NVIDIA along with several other executives, and Groq will continue to operate independently under its current CFO.
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