Nvidia is reported to be in talks to acquire Groq for about $20 billion, according to people familiar with the matter. If completed, the deal would rank among Nvidia’s largest acquisitions and further strengthen its position in artificial intelligence hardware.

Details of the reported deal

The discussions are ongoing and have not yet resulted in a final agreement. Sources said the deal terms could still change, and there is no certainty the transaction will be completed.

However, the reported valuation highlights the growing importance of specialised AI chip technology. As demand for AI computing rises, companies are racing to secure advanced hardware capabilities.

What Groq does

Groq was founded by Jonathan Ross, a former Google engineer involved in developing early AI processing units. The company designs chips focused on AI inference, which involves running trained models quickly and efficiently.

Unlike traditional graphics processors, Groq’s chips use a deterministic architecture. This design allows predictable performance and low latency. As a result, the technology has attracted interest from developers building large-scale AI systems.

Why Nvidia wants Groq

Nvidia already dominates the market for AI training chips. However, competition in inference hardware has increased rapidly.

By acquiring Groq, Nvidia could expand its reach across the entire AI workflow. This includes both training and deployment. In addition, Groq’s technology could complement Nvidia’s existing data-centre products and software tools.

Moreover, the deal would help Nvidia respond to rivals investing in custom AI chips.

Market reaction and industry context

The reported talks come amid surging global demand for AI infrastructure. Companies across sectors continue to invest heavily in computing power to support generative AI and enterprise applications.

Nvidia’s shares have risen sharply in recent years as AI spending accelerated. Therefore, investors closely monitor any strategic move that could reinforce the company’s leadership.

At the same time, large technology acquisitions face closer regulatory review worldwide.

Regulatory and execution considerations

A transaction of this size would likely draw scrutiny from competition authorities. Regulators have shown increased interest in deals involving dominant technology firms.

Sources said the companies are aware of potential hurdles. So far, neither Nvidia nor Groq has confirmed the reported talks.

“Large strategic deals in AI hardware are becoming increasingly complex,”
one industry observer noted, pointing to regulatory and integration challenges.

What happens next

There is no timeline for a final decision. Still, the talks signal Nvidia’s intent to remain at the forefront of AI hardware development.

If completed, the acquisition could reshape competition in the AI chip market. It may also influence future investment strategies across the sector.