Business

$20 Billion for AI Chip Designer Groq to Be Nvidia's Biggest Acquisition
By Reuters | 24 Dec, 2025

Groq, a startup specializing in producing AI inference chips to accelerate pre-trained models, would be Nvidia's biggest acquisition ever.

Nvidia has agreed to buy Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, CNBC reported on Wednesday. 

While the acquisition includes all of Groq's assets, its nascent Groq cloud business is not part of the deal, the report said, citing Alex Davis, CEO of Disruptive, which led the startup's latest financing round.

Groq is a chip startup founded by Jonathan Ross and specializes in producing AI inference chips designed to optimize pre-trained models. 

The company more than doubled its valuation to $6.9 billion, from $2.8 billion in August last year, following a $750 million funding round in September. 

A deal for the reported amount would mark the largest acquisition by Nvidia following its $6.9 billion deal for Mellanox Technologies. 

Groq is expected to alert its investors about the deal later in the day, CNBC reported.

Nvidia and Groq did not immediately respond to Reuters request for comments.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shailesh Kuber)