On December 27, 2025, Nvidia confirmed it is licensing AI chip startup Groq’s inference technology and hiring founder Jonathan Ross, president Sunny Madra and key team members. Groq said it will remain an independent company under new CEO Simon Edwards as part of the non-exclusive agreement, pushing back on earlier reports of a full $20 billion acquisition.
This article aggregates reporting from 4 news sources. The TL;DR is AI-generated from original reporting. Race to AGI's analysis provides editorial context on implications for AGI development.
Nvidia’s deal with Groq is one of the clearest signals yet that the AI hardware race is shifting from training to inference. By licensing Groq’s ultra‑low‑latency LPU architecture and effectively acqui‑hiring its top technical leadership, Nvidia is fortifying its stack for real‑time applications like chatbots, copilots and agentic systems that must respond instantly at scale. Instead of eliminating Groq as a competitor outright, Nvidia gains the IP and talent it cares about most while leaving a nominally independent startup in place—an increasingly common pattern designed to keep antitrust heat at bay. ([newagebd.net](https://www.newagebd.net/post/mis/286332/nvidia-expands-ai-empire-with-groq-talent-grab))
For the broader race to AGI, this move tightens Nvidia’s grip on the compute layer that everyone else depends on. A world where training and inference both centralize on a single vendor makes it easier to roll out ever‑larger, more capable models, but it also increases systemic risk: if Nvidia stumbles, the whole ecosystem feels it. The Groq architecture is optimized for deterministic, high‑throughput inference, which is exactly what you need to turn frontier models into ubiquitous, always‑on services. That kind of scale is less about one more benchmark and more about saturating the real world with intelligent systems—arguably the main bottleneck between today’s models and something that feels like general intelligence in practice.
