Nvidia is buying the AI chip startup Groq for $20 billion, according to a report fromCNBC. The purchase is expected to be Nvidia’s largest ever, and with Groq on its side, Nvidia is poised to become even more dominant in chip manufacturing.
As tech companies compete to grow their AI capabilities, they need computing power, and Nvidia’s GPUs have emerged as the industry standard. But Groq has been working on a different type of chip called an LPU (language processing unit), which ithas claimed can run LLMsat 10 times faster and using one-tenth the energy. Groq’s CEO Jonathan Ross is known for this sort of innovation — when he worked for Google, he helped invent theTPU(tensor processing unit), a custom AI accelerator chip.
In September, Groqraised $750 millionat a $6.9 billion valuation. Its growth has been quick and significant — the company said that it powers the AI apps of more than 2 million developers, up from about 356,000 last year.
Source: Techcrunch
