Nvidia strikes Groq deal to bolster inference and ease memory bottlenecks

Core Insights - Nvidia has acquired Gro for $20 billion, a company founded by Jonathan Ross, who was instrumental in developing Google's TPU, a significant competitor to Nvidia's offerings [1] - This acquisition is part of Nvidia's strategy to enhance its talent pool and expertise in AI, as it has significantly increased its cash reserves to $60 billion from $13 billion over the past two years [2] - Nvidia's investment strategy includes various financial commitments, such as $900 million for Infabrica, $5 billion into Intel, and a proposed $100 billion for OpenAI, while also supporting other companies like Crusoe, Coher, and Coree [3] Technical Advantages - Gro's chips address a critical technical issue for Nvidia by enabling data storage directly on the processor, reducing reliance on high bandwidth memory, which has been a supply chain challenge for Nvidia [4]