Nvidia Licenses Groq's Inference Tech

Nvidia has entered a non-exclusive licensing agreement with Groq for its AI inference technology. As part of the agreement, Groq's founder Jonathan Ross, President Sunny Madra, and other team members will join Nvidia to advance the licensed technology. However, Groq will continue to operate as an independent company, with Simon Edwards stepping in as CEO.

Groq specialises in inference, where pre-trained AI models respond to user requests. This agreement allows Nvidia to expand access to high-performance, low-cost inference solutions. Groq's approach uses on-chip SRAM memory, which speeds up interactions with AI models but limits the model size. Groq's cloud business will continue to operate.

Nvidia's move strengthens its position in the AI chip market, particularly in inference, where it faces competition from AMD and other startups. The company has booked $500 billion in orders for its Blackwell and Rubin chips. Nvidia's Q3 2025 AI revenue reached $57.01 billion, a 62.5% year-over-year increase.