Nvidia strikes $20 billion deal with Groq: Here's what you need to know

Core Insights - Nvidia has entered a non-exclusive licensing agreement with Grock, acquiring its intellectual property and bringing its founder Jonathan Ross on board, which is significant given Ross's background in developing Google's TPU, a competitor to Nvidia's offerings [2][3] - The AI industry is transitioning from model training to running models at scale, known as inference, which is expected to drive future revenue growth for Nvidia [3] - Grock's recent revenue forecast was slashed by 75%, raising questions about its competitive advantage despite the deal [8][10] Company Developments - Nvidia is leveraging its $60 billion cash reserve to strategically invest in technologies that enhance its capabilities while mitigating competition [5] - The deal with Grock allows Nvidia to enhance its inference capabilities and potentially sidestep supply chain issues related to memory, which are critical for its GPU operations [9] - The competitive landscape is shifting, with other companies like Intel and Meta also pursuing acquisitions in the AI chip sector, indicating a wave of consolidation in the industry [10]