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Nvidia to buy assets from Groq for $20B cash

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

#161

Post by SecretDreams »

wmf wrote: post #105
SecretDreams wrote: post #99

Earlier quoted context omitted.

Is this to somehow screw the employees with RSUs or what?

No, it doesn't really matter if they pay in cash or stock. If you think NVDA has room to run you're welcome to use your buyout money to buy NVDA on the open market.

Well, this isn't framed as a buyout/takeover, so I was curious how existing RSUs would be cashed out?

This deal is framed as IP transfer and talent transfer without owning the full company. Probably to skirt anti trust, among other things.

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

#162

Post by impulser_ »

nl wrote: post #152
impulser_ wrote: post #97

Are they buying them to try and slow down open source models and protect the massive amounts of money they make from OpenAI, Anthropic, Meta ect? It quite obvious that open source models are catching up to closed source models very fast they about 3-4 months behind right now, and yeah they are trained on Nvidia chips, but as the open source models become more usable, and closer to closed source models they will eat i…

NVIDIA release some of the best open source models around. Almost all open source models are trained and mostly run on NVIDIA hardware. Open source is great for NVIDIA. They want more open source, not less. Commoditize your complement is business 101.

Then why are they spending $20 billion dollars to handicap an inference company that giving open source models a major advantage over closed source models?

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

#163

Post by ThrowawayTestr »

dontwannahearit wrote: post #150
impulser_ wrote: post #127

Earlier quoted context omitted.

They don't need to catch up. They just need to be good enough and fast as fuck. Vast majority of useful tasks of LLMs has nothing to do with how smart they are. GPT-5 models have been the most useless models out of any model released this year despite being SOTA, and it because it slow as fuck.

Confused. Is ‘fuck’ fast or slow? Or both at the same time? Is there a sort of quantum superposition of fuck?

It's an intensifier

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

#164

Post by ThrowawayTestr »

Daviey wrote: post #119

I got curious about how many wheelbarrows of cash $20bn actually is. Two ways to think about it: weight vs volume. By weight (assuming all $100 bills): $20,000,000,000 / $100 = 200,000,000 bills Each bill is roughly 1g, so total mass is ~200,000 kg A typical builder’s wheelbarrow can take about 100 kg before it becomes unmanageable 200,000 kg total / 100 kg per wheelbarrow ≈ 2,000 wheelbarrows (weight limit) By volum…

Your volume of a single bill is a bit off.

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

#165

Post by Imustaskforhelp »

I believe that this news kind of helps cerebras as groq and cerebras are the only two companies working extensively in this space

I feel as if Nvidia is eating up even companies which I thought had genuine potential or anything related to AI industry whether profitable or not

Nvidia's trying its best to take all major players and consolidate into one big entity from top to bottom.

The problem with this approach imo is that long term, nvidia's stock is extremely overvalued and its still a bubble which will burst and it will take nvidia first and foremost.

The issue is that when nvidia falls, it will take the whole literal industry from top to bottom, even those companies which I thought could survive an AI burst. Long term I feel like it will have really bad impacts if nvidia continues to gobble up every company.

I am pretty sure that Nvidia might be looking at cerebras too and if they offer them a shit ton of money and cerebras gets bought. I genuinely believe that Nvidia has sort of invested in literally all pockets of any hardware related investment for AI. And when OpenAI is unable to pay Nvidia, I feel like it can all come crashing down since this whole cycle is only being possible via external investor money.

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

#166

Post by fancyfredbot »

bri3d wrote: post #87
fancyfredbot wrote: post #36

The price is 40x their target revenue. That's twice the price to revenue multiplier applied to Anthropic in their most recent funding round, and really really hard to portray as a good deal. I don't think it really helps Nvidia's competitive position. The serious competition to Nvidia is coming from Google's TPU, Amazon's Trainium, AMD's Instinct, and to a much lesser extent Intel's ARC. Grow recent investors got bac…

The only thing I can think of here is that OpenAI’s DRAM land grab is going to stack on a non-NV target and NV need to hedge with an SRAM design that’s on the market NOW. Otherwise, I can’t see how NV couldn’t eat Groq’s lunch in one development cycle - it’s not like NV can’t attach a TPU to some SRAM and an interconnect. Either that or Groq closed a deep enough book to scare them, but 40x is a lot of scared.

That's an interesting take, it's plausible Nvidia wants to have an SRAM based product, but I am struggling to see why they would pay $20bn to have one /right now/. Even if DRAM prices make Groq's approach more economical, Nvidia can develop a competitive product before Groq could take any real market share.

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

#167

Post by htrp »

pinkmuffinere wrote: post #146

> Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer. Kindof feel bad for Simon Edwards, lol. I wonder what the plan is for the future of Groq

He has to keep the company in business for 2 more years

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

#168

Post by lerchmo »

hmate9 wrote: post #137
andrewinardeer wrote: post #94

Headline is incorrect. NVIDIA isn't buying Groq. It's a non exclusive deal for inference tech. Or am I reading it incorrectly?

There is also movement over of some key people to nvidia which is pretty significant: "As part of this agreement, Jonathan Ross, Groq’s Founder, Sunny Madra, Groq’s President, and other members of the Groq team will join Nvidia to help advance and scale the licensed technology."

curious how the execs can honor the fiduciary duty to share holders assuming only they? get the 20 billion and the company is left headless and leaking all of its intellectual property to Nvidia?

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

#169

Post by bri3d »

fancyfredbot wrote: post #166
bri3d wrote: post #87

Earlier quoted context omitted.

The only thing I can think of here is that OpenAI’s DRAM land grab is going to stack on a non-NV target and NV need to hedge with an SRAM design that’s on the market NOW. Otherwise, I can’t see how NV couldn’t eat Groq’s lunch in one development cycle - it’s not like NV can’t attach a TPU to some SRAM and an interconnect. Either that or Groq closed a deep enough book to scare them, but 40x is a lot of scared.

That's an interesting take, it's plausible Nvidia wants to have an SRAM based product, but I am struggling to see why they would pay $20bn to have one /right now/. Even if DRAM prices make Groq's approach more economical, Nvidia can develop a competitive product before Groq could take any real market share.

Exactly. The only way this makes sense to me is if the board needed this product in <1 cycle. Which makes no sense for a market player like NV who already have the PDK, volume, and literally everything else in the universe. But here it is, so there is clearly a factor I have not considered :)

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

#170

Post by lerchmo »

cavisne wrote: post #153
pinkmuffinere wrote: post #146

> Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer. Kindof feel bad for Simon Edwards, lol. I wonder what the plan is for the future of Groq

I would assume this is a very well paid position, and with basically nothing to do.

I would assume he is a fiduciary... I am curious what happens with investors here?
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