On December 24, CNBC reported that Alex Davis, CEO of U.S. technology investment firm Disruptive, claimed NVIDIA had agreed to acquire high-performance AI accelerator chip designer Groq in an all-cash deal valued at approximately USD 20 billion, triggering widespread industry attention.

Notably, on the same day the news surfaced, Groq announced on its official website that it had entered into a non-exclusive licensing agreement with NVIDIA, granting NVIDIA access to Groq’s inference technology.

According to Groq, the agreement reflects both parties’ shared commitment to expanding the adoption of high-performance, cost-efficient inference technologies. As part of the arrangement, Groq founder Jonathan Ross, President Sunny Madra, and other members of the Groq team will join NVIDIA to help advance and scale up the licensed technology.

Groq is a Silicon Valley–based AI chip startup founded by a team of former NVIDIA engineers. While Groq did not directly address CNBC’s acquisition report in its announcement, the company stated that it will continue to operate as an independent entity, with Simon Edwards serving as chief executive officer. In addition, GroqCloud will remain fully operational without interruption.

Meanwhile, Chinese media outlets including Yicai reported that NVIDIA responded to the acquisition rumors by clarifying that it has not acquired Groq, but has instead obtained a non-exclusive license to certain Groq intellectual property.

In its latest statement to Yicai reporters, NVIDIA said it has also recruited engineering talent from the Groq team, and that both sides will work together to deliver leading accelerated computing technologies.

(Photo credit: Groq)