CNBC December 24, 2025
Key Points
– Nvidia is making its largest purchase ever, acquiring nine-year-old chip startup Groq for about $20 billion.
– The company was founded by creators of Google’s tensor processing unit, or TPU, which competes with Nvidia for artificial intelligence workloads.
– Groq was valued at $6.9 billion in a financing round in September.
Nvidia has agreed to buy Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, according to Alex Davis, CEO of Disruptive, which led the startup’s latest financing round in September.
Davis, whose firm has invested more than half a billion dollars in Groq since the company was founded in 2016, said the deal came together quickly. Groq raised $750 million...
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