Groq CEO joins Nvidia in big AI move

Nvidia has agreed to license chip technology from AI startup Groq and hire its CEO, Jonathan Ross, along with Groq President Sunny Madra and other members of its engineering team, the companies announced Wednesday. Ross, a former Google veteran, helped the tech giant establish its AI chip program.

The non-exclusive licensing deal allows Nvidia to access Groq's inference technology used for running pre-trained AI models without acquiring the company outright. Groq will continue to operate independently under new CEO Simon Edwards, and its cloud business will remain intact. Financial details of the agreement were not disclosed, though CNBC previously reported Nvidia had considered a $20 billion cash acquisition.

The move highlights a growing trend in the tech industry, where major firms secure technology and talent from startups through licensing and strategic hires rather than full acquisitions. Similar deals in recent years include Microsoft paying $650 million for a licensing arrangement with a startup, Meta acquiring Scale AI’s CEO for $15 billion, and Amazon hiring Adept AI’s founders.

Nvidia, a market leader in AI model training, faces stiffer competition in the inference segment from rivals like Advanced Micro Devices (AMD) and startups such as Groq and Cerebras Systems. Groq, which uses on-chip SRAM rather than external high-bandwidth memory, has doubled its valuation to $6.9 billion following a $750 million funding round in September 2025. The company claims this approach speeds up AI interactions but limits the size of models that can be served.

Bernstein analyst Stacy Rasgon noted that while the non-exclusive license preserves the appearance of competition, Nvidia’s acquisition of Groq’s leadership and technical talent could raise antitrust concerns.

Groq’s primary competitor in the SRAM-based approach is Cerebras Systems, which Reuters reported may go public as soon as next year. Both Groq and Cerebras have secured significant deals in the Middle East.

During Nvidia’s 2025 keynote, CEO Jensen Huang emphasized that the company is positioned to maintain its dominance as AI shifts from model training to inference applications.