I could not figure out if „cash“ means literally cash or figuratively cash in the sense of “no trade in shares”. Will there be a truck full of paper money or not?
Unless one is worried about the government, no one ever means paper money.
Nvidia to buy assets from Groq for $20B cash
171–180 of 424 posts
Re: Nvidia to buy assets from Groq for $20B cash
#172Legit feels like Nvidia just buying out competition to maintain their position and power in the industry. I sincerely hope they fall flat on their face.
> Legit feels like Nvidia just buying out competition to maintain their position and power Well, I mean, isn't that exactly what they should be doing? (I'm not talking about whether or not it benefits society; this is more along the lines of how they're incentivized.) Put yourself in their shoes. If you had all that cash, and you're hearing people talk of an "AI Bubble" on a daily basis, and you want to try and ensur…
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Re: Nvidia to buy assets from Groq for $20B cash
#173Earlier quoted context omitted.
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.
I'm not sure in this specific case. They could choose to pay the employees some portion of the funds.
If not, the owners are likely liable to be sued for "selling in effect" without paying equity holders.
Presuming the company becomes a defacto subsidiary of Nvidia (even if not legally so)
My guess, without researching it, is they will compensate existing equity holders to avoid that possibility. I mean the valuation multiple is enormous, it's worth it simply to derisk the legal aspect.
Re: Nvidia to buy assets from Groq for $20B cash
#174The 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…
But if all of these large companies create a monopoly where they realize that if they start undercutting each other or innovating too extremely then long term if Nvidia's stock decreases in value by a huge margin, the whole market itself can get down
As an example: if google TPU (perfected?) itself to the point that it hurts nvidia sales (maybe mass production perhaps?) then all the companies stock price might decrease (in my opinion including google)
Honestly, I feel like there is going to happen something in the market which is gonna be very spooky soon regarding AI.
I feel like we are gonna drag this bubble really long and actually worsen all the pain which is gonna be caused by it long term.
Re: Nvidia to buy assets from Groq for $20B cash
#175Earlier quoted context omitted.
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.
For vested RSUs it's likely that the Groq husk will pay out the $20B as a dividend or buyback or something. I don't know if unvested RSUs are accelerated or just canceled. Of course the employees will receive new RSUs when they join Nvidia.
Re: Nvidia to buy assets from Groq for $20B cash
#176Earlier 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?
well, it's not slow as fuck! it's quick as lightning and speedy as hell
Re: Nvidia to buy assets from Groq for $20B cash
#177The last time I tested, I could swear they were doing some problematic quantization, because I was getting kind of random results with one or two models, which worked perfectly when I switched providers.
It was really disappointing too because Cerebras does not provide any service reliability on their cheap plans. So I came to the conclusion that unless I could convince the client to set up an enterprise contract or something, we could not use either provider for low-latency, which we need for voice calls. I think for organizations that can afford a hefty contract that guarantees service levels, Groq and Cerebras especially are basically cheat codes for meeting latency requirements for voice. But that might not be an option for really small businesses.. although maybe I am just not a good sales person.
Re: Nvidia to buy assets from Groq for $20B cash
#178Earlier quoted context omitted.
And China.
It would be interesting if it turned out that Chinese competition was the only thing that kept this market working!
I imagine 2 big giants basically (Nvidia/google/amd basically influenced by a few select of people) vs (Chinese companies who have investments from the govt)
its sort of like proxy wars and this is sort of whats happening in software side of things with open source models but I think that the benefit of the proxy wars is going to be for the end consumers
But although on the other hand, having two large countries compete with each other while buying everything else and all feels like it astronomically increases the price if someone wants to compete with these two giants (any other country perhaps)
We definitely need a better system where it doesn't feel like we are seeing pacman eat everything up basically
Re: Nvidia to buy assets from Groq for $20B cash
#179Are 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…
Yes, you are way off, because Groq doesn't make open source models. Groq makes innovative AI accelerator chips that are significantly faster than Nvidia's.
Re: Nvidia to buy assets from Groq for $20B cash
#180Earlier quoted context omitted.
was the API good
fast but furiously expensive
Honestly cerebras is good. I can recommend it. I talked to their team once on discord as a literal free user so that was something really nice personally
They were also the faster one compared to groq but they were always a little slow on adding new models compared to groq but not sure what changed right now.
Definitely recommend cerebras tho now that groq's been eaten up from inside basically