Nvidia has entered into a non-exclusive licensing arrangement with competitor Groq in the AI chip sector. Under the terms of this agreement, Nvidia will be employing Groq’s founder Jonathan Ross, president Sunny Madra, along with other staff members.

According to CNBC, Nvidia is securing assets from Groq for $20 billion; however, Nvidia informed TechCrunch that this does not constitute an acquisition of the entire company and refrained from addressing the specifics of the arrangement. If the figures reported by CNBC are indeed correct, this transaction would mark Nvidia’s largest acquisition to date, and with Groq in its arsenal, Nvidia stands to enhance its dominance in chip production.

As technology firms vie to expand their AI capabilities, they require substantial computing power, and Nvidia’s GPUs have set the benchmark for the industry. Conversely, Groq has developed a unique chip known as an LPU (language processing unit), which it claims can operate LLMs at speeds 10 times greater while consuming only a tenth of the energy. Groq’s CEO Jonathan Ross is recognized for his innovative approaches—while at Google, he contributed to the creation of the TPU (tensor processing unit), a specialized AI accelerator chip.

In September, Groq secured $750 million at a valuation of $6.9 billion. The company’s growth has been rapid and substantial—reportedly, it now supports the AI applications of more than 2 million developers, up from roughly 356,000 the previous year.

Updated, 12/24/25 at 5:40 p.m. ET, with clarification from Nvidia regarding the nature of the deal.