Nvidia's $20 Billion Groq Deal Sparks Market Buzz and Risks
Originally Published 16 days ago — by Barron's
Nvidia's purchase of a license from AI chip startup Groq is a strategic move to strengthen its position in AI inference hardware, signaling a shift towards specialized chips for running AI models. While it may threaten Nvidia's high gross margins, the deal aims to preempt competitive threats and adapt to the growing demand for inference chips, similar to Facebook's acquisition of Instagram to secure its social media dominance.