Earlier quoted context omitted.
The employees are getting paid zero times.
do they make a salary
If part of their remuneration is in shares, they have a legitimate interest in the value of those shares.
Nvidia to buy assets from Groq for $20B cash
311–320 of 424 posts
Re: Nvidia to buy assets from Groq for $20B cash
#312Are 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…
The constant threat of open source (and other competitors) is what keeps the big fish from getting complacent. It’s why they’re spending trillions on new data centers, and that benefits Nvidia. When there’s an arms-race on it’s good to be an arms dealer.
Re: Nvidia to buy assets from Groq for $20B cash
#313Earlier quoted context omitted.
Another example of the growing trend of buying out key parts of a company to avoid any actual acquisition? I wonder if equity holding employees get anything from the deal or indeed if all the investors will be seeing a return from this?
I have a friend who worked in a company that got "not acquired" in a similar deal. She didn't see a dime out of it, and was let off (together with a big chunk of people) within 6 months.
As this gets more common, I think it will eventually lead to startups having a hard time attracting talent with lucrative equity compensation. It will be interesting to see how long it takes until this catches on among employees, but I already wouldn't take any positions in startups with a significant payment in equity anymore. The chances are slim that this pays out anyways, but now even when you are successful, noone will stop some megacorp from just buying the product and key employees and leaving everyone else with their stake in the dust.
Re: Nvidia to buy assets from Groq for $20B cash
#314The 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.
I want to subscribe to your AI wars news please!
Joke aside, the strategic choices here and there hint at the blood lust of all other actors to dethrone Nvidia, it’s fascinating.
Re: Nvidia to buy assets from Groq for $20B cash
#315Are 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…
Your way off, this reads more like anti capitalist political rhetoric than real reasoning.
Look at Nvidia nemotron series. They hav become a leading open source training lab themselves and they’re releasing the best training data, training tooling, and models at this point.
Re: Nvidia to buy assets from Groq for $20B cash
#316I 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…
Something wrong about representing the weight of US dollars in metric units.
> Something wrong about representing the weight of US dollars in metric units.
The traditional unit of measure of truckloads of money is (drum roll) a dump truck. A large dump truck holds 16-20 cubic yards.
https://www.catdumptruck.com/standard-dump-truck-size-chart/
Re: Nvidia to buy assets from Groq for $20B cash
#317Earlier quoted context omitted.
It's a non-exclusive deal. No reason for antitrust action whatsoever.
That’s a loophole. Regulation hasn’t caught up to the innovation of non-exclusive licensing deal. Hopefully we’ll get some competence back in government soon-ish and can rectify the mistake
That's not a loophole. Non-exclusive licensing agreement is the opposite of loophole.
Re: Nvidia to buy assets from Groq for $20B cash
#318Someone say to me that Nvidia is not buying Groq; the deal is a non-exclusive licensing agreement for its inference technology with some team members joining Nvidia.
and he gave me this link:
https://groq.com/newsroom/groq-and-nvidia-enter-non-exclusiv...
https://www.cnbc.com/2025/12/24/nvidia-buying-ai-chip-startu...
Re: Nvidia to buy assets from Groq for $20B cash
#319Groq press release: https://groq.com/newsroom/groq-and-nvidia-enter-non-exclusiv... > Today, Groq announced that it has entered into a non-exclusive licensing agreement with Nvidia for Groq’s inference technology. The agreement reflects a shared focus on expanding access to high-performance, low cost inference. > As part of this agreement, Jonathan Ross, Groq’s Founder, Sunny Madra, Groq’s President, and other member…
Another example of the growing trend of buying out key parts of a company to avoid any actual acquisition? I wonder if equity holding employees get anything from the deal or indeed if all the investors will be seeing a return from this?
It’s yet another way for investors to screw early employees whose face doesn’t fit.
Re: Nvidia to buy assets from Groq for $20B cash
#320Earlier quoted context omitted.
Why would it have to take 4 years? It sure hasn't taken the current admin 4 years to disappear people into Salvadorian torture prisons.
Destroying things and outsourcing to already-built prisons is easy. Building things is not. All they have is a demolition site. There's no final design. Trump keeps changing his vision of his mausoleum. They don't have an architect since the previous one quit. They have less than a week to submit construction plans[1], and they're clearly missing that deadline. It is of course not the end, but it's a sign of things t…
Are you sure this is how he'll be remembered? Half the US thought him preferable to AOC and Hillary Clinton. It's hard to conclude in any other way than that the perception of his legacy will be equally divided.