Nvidia to buy assets from Groq for $20B cash

#1

Post by nickrubin » Wed, Dec 24, 2025, 9:02 PM UTC

https://groq.com/newsroom/groq-and-nvidia-enter-non-exclusiv...

Nvidia to buy assets from Groq for $20B cash
cnbc.com

Re: Nvidia to buy assets from Groq for $20B cash

#2

Post by rvz » Wed, Dec 24, 2025, 9:17 PM UTC

Great choice and what a great deal.

Quite obvious that Groq would get acquired. [0]

[0] https://news.ycombinator.com/item?id=39438820

Re: Nvidia to buy assets from Groq for $20B cash

#3

Post by scratchyone » Wed, Dec 24, 2025, 9:17 PM UTC

Uh oh, not good that a major Nvidia competitor with genuine alternative technology will no longer be competing... Chances this tech gets killed post-acquisition?

Re: Nvidia to buy assets from Groq for $20B cash

#4

Post by throwup238 » Wed, Dec 24, 2025, 9:18 PM UTC

> Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq’s assets, its nascent Groq cloud business is not part of the transaction, said Davis.

Wait, what? How is the cloud business supposed to run if Nvidia is acquiring the rights to the hardware?

Re: Nvidia to buy assets from Groq for $20B cash

#5

Post by kreyenborgi » Wed, Dec 24, 2025, 9:19 PM UTC

There was an AMA here last year https://news.ycombinator.com/item?id=39429047

Re: Nvidia to buy assets from Groq for $20B cash

#6

Post by asdev » Wed, Dec 24, 2025, 9:19 PM UTC

[flagged]

Re: Nvidia to buy assets from Groq for $20B cash

#7

Post by behnamoh » Wed, Dec 24, 2025, 9:20 PM UTC

I just stopped my Groq API. Sad to see competition being eaten up by shitty Nvidia. I like their products but Jensen is an absolute mfer with deceitful marketing.

Re: Nvidia to buy assets from Groq for $20B cash

#8

Post by ChristianJacobs » Wed, Dec 24, 2025, 9:21 PM UTC

throwup238 wrote: post #4

> Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq’s assets, its nascent Groq cloud business is not part of the transaction, said Davis. Wait, what? How is the cloud business supposed to run if Nvidia is acquiring the rights to the hardware?

That's the neat trick - it isn't...

Re: Nvidia to buy assets from Groq for $20B cash

#9

Post by garyfirestorm » Wed, Dec 24, 2025, 9:23 PM UTC

ChristianJacobs wrote: post #8

throwup238 wrote: post #4

> Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq’s assets, its nascent Groq cloud business is not part of the transaction, said Davis. Wait, what? How is the cloud business supposed to run if Nvidia is acquiring the rights to the hardware?

That's the neat trick - it isn't...

Sell the asset and then lease it from the buyer.

Re: Nvidia to buy assets from Groq for $20B cash

#10

Post by onion2k » Wed, Dec 24, 2025, 9:24 PM UTC

throwup238 wrote: post #4

> Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq’s assets, its nascent Groq cloud business is not part of the transaction, said Davis. Wait, what? How is the cloud business supposed to run if Nvidia is acquiring the rights to the hardware?

It isn't, and the other companies that offer cloud AI that Nvidia has invested in can carry on happy they have one less competitor.

This is how business works in the 21st century - once one company has a dominant position and a massive warchest they can just buy any business that has any potential of disrupting their revenue. It's literally the thesis Peter Thiel sets out in Zero To One. It works really well for that one business.