221–230 of 424 posts
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…
And Cerebras
Biggest surprise for me is that they chose to announce this on Christmas Eve. I’d love to have been in the room when that was decided. The big, exciting news doesn’t typically get announced during a major holiday week.
Given that Groq is basically the TPU spin out Google should have done years ago it shows what a valuable asset TPUs are in Google. Still this they should spin that out though!
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…
Shy of an algo breakthrough, open source isn't going to catch up with SOTA, their main trick for model improvement is distilling the SOTA models. That's why they they have perpetually been "right behind".
Earlier quoted context omitted.
there’s no path to profitability for the buyers of these chips given the cost and capabilities of the current LLM architectures Didn't Anthropic say inference is already profitable?
Presuming that’s why they raised 3 times this year.
Earlier quoted context omitted.
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 :)
From the comment below: > Groq raised $750 million at a valuation of about $6.9 billion three months ago. Investors in the round included Blackrock and Neuberger Berman, as well as Samsung, Cisco, Altimeter and 1789 Capital, where Donald Trump Jr. is a partner. Makes it very hard not to think of this as a way to give money to the current administration. I know, this sounds conspiracy theory grade, but 20b is too much…
Earlier quoted context omitted.
Shy of an algo breakthrough, open source isn't going to catch up with SOTA, their main trick for model improvement is distilling the SOTA models. That's why they they have perpetually been "right behind".
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.
The current SOTA models are impressive but still far from what I’d consider good enough to not be a constant exercise in frustration. When the SOTA models still have a long way to go, the open weights models have an even further gap distance to catch up.
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…
Shy of an algo breakthrough, open source isn't going to catch up with SOTA, their main trick for model improvement is distilling the SOTA models. That's why they they have perpetually been "right behind".
Related on the business side, and from the last two years: AI Chip Startup Groq Raises $750M at $6.9B Valuation - https://news.ycombinator.com/item?id=45276985 - Sept 2025 (5 comments) Groq Raises $640M to Meet Soaring Demand for Fast AI Inference - https://news.ycombinator.com/item?id=41162875 - Aug 2024 (34 comments) AI chip startup Groq lands $640M to challenge Nvidia - https://news.ycombinator.com/item?id=4116246…
From $6.9b to 20 in a few months, not bad…
Even in public markets, acquiring all the shares of a company will require an offer that is a significant step above the current trading price.