Nvidia acquires AI chip challenger Groq for $20B, report says

Nvidia is buying AI chip startup Grok for $20 billion, according to a report cnbcThe purchase is expected to be Nvidia’s largest to date, and with Groke, Nvidia is poised to become even more influential in chip manufacturing,

As tech companies compete to increase their AI capabilities, they need computing power, and Nvidia’s GPUs have emerged as the industry standard. But Grok is working on a different type of chip called an LPU (Language Processing Unit) Claims that he can run LLM 10 times faster and using one-tenth the energy. Grok CEO Jonathan Ross is known for this kind of innovation — when he worked for Google, he helped invent tpu (Tensor Processing Unit), a custom AI accelerator chip.

In September, Grok raised $750 million At a valuation of $6.9 billion. Its growth has been quick and significant — the company said it powers AI apps from more than 2 million developers, up from about 356,000 last year.

TechCrunch contacted Nvidia for comment.

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