Artificial intelligence technology company Groq has signed a non-exclusive licensing agreement with NVIDIA, allowing the latter to access Groq’s inference technology to expand and advance high-performance AI inference.
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Groq said Wednesday that the agreement also includes company president Sunny Madra and company founder and CEO Jonathan Ross moving over to NVIDIA. Simon Edwards will succeed Ross as chief executive at Groq, which will continue to operate as an independent company. Edwards most recently served as Groq’s chief financial officer.
What Are the Details of the Groq-NVIDIA Licensing Deal?
According to Alex Davis, CEO of Dallas-based growth investment firm Disruptive, NVIDIA has agreed to acquire Groq’s assets for approximately $20 billion in cash, CNBC reported Wednesday.
In September, Groq raised $750 million in a financing round led by Disruptive, which has invested more than $500 million in the company since its founding in 2016.
Davis told CNBC that the transaction includes all of Groq’s assets except for its cloud business. In its post, Groq stated that GroqCloud will continue operating without interruption.
How Does Groq Support the Federal Government?
In mid-December, Groq signed a memorandum of understanding with the Department of Energy to explore opportunities to advance AI inference for scientific discovery and research energy-efficient AI compute infrastructure, among others.
In May 2024, Groq entered into a public sector distribution partnership with Carahsoft Technology to make its AI inference products available to federal, state and local government agencies through Carahsoft’s reseller partners and government procurement vehicles.
