Exclusive: Nvidia buying AI chip startup Groq for about $20 billion in its largest acquisition on…

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Exclusive: Nvidia buying AI chip startup Groq for about $20 billion in its largest acquisition on record

Nvidia has agreed to buy Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, according to Alex Davis, CEO of Disruptive, which led the startup's latest financing round in September.

Davis, whose firm has invested more than half a billion dollars in Groq since the company was founded in 2016, said the deal came together quickly. Groq raised $750 million at a valuation of about $6.9 billion three months ago. Investors in the round included Blackrock and Neuberger Berman, as well as Samsung, Cisco, Altimeter and 1789 Capital, where Donald Trump Jr. is a partner.

Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq's assets, its nascent Groq cloud business is not part of the transaction, said Davis.

Nvidia to buy AI chip startup Groq for about $20 billion, CNBC reports

Published on 12/24/2025
at 04:04 pm EST – Modified on 12/24/2025
at 04:11 pm EST

Dec 24 (Reuters) – 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 transaction, the report said, citing Alex Davis, CEO of Disruptive, which led the startup's latest financing round.

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)

Nvidia has agreed to buying AI chip startup Groq for about $20 billion – CNBC

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