Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Nvidia to buy assets from Groq for $20B cash

cnbc.com

Post reply on HN
Print view View original

321–330 of 424 posts

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

#321

Post by woadwarrior01 »

Sayyidalijufri wrote: post #318

Someone 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...

Indeed, it seems to be an Inflection-AI[1] style acquihire of senior leadership and not an acquisition. MS also entered into a non-exclusive licensing agreement with what was left of Inflection AI after poaching its founders.

[1]: https://en.wikipedia.org/wiki/Inflection_AI

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

#323

Post by AmazingTurtle »

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…

Show me an affordable open source coding model thats closet to GPT-5.2-codex capabilities. Note: I do not have tons of HBM lying around

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

#324

Post by AmazingTurtle »

impulser_ wrote: post #127
Workaccount2 wrote: post #114

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.

I'd prefer a 30 minute response from GPT-5 over a 10 minute Response from {Claude/Google} (yes, even gemini 3)

Reason is: while these models look promising in benchmarks and seem very capable at an affordable price, I *strongly* felt that OpenAI models perform better most of the times. I had to cleanup Gemini mess or Claude mess after vibe coding too much. OpenAI models are just much more reliable with large scale tasks, organizing, chomping tasks one by one etc. That takes its time but the results are 100% worth it.

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

#325

Post by epolanski »

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…

I don't see where is the benefit for Nvidia to limit the open source models.

The more competition, the more shovels they sell.

It's like saying that Intel would've benefited if only Dell and few others sold servers because they brought in multiple billions per year.

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

#327

Post by jayanmn »

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…

China may take over the open source part. That is the only country with exposure to hardware, software and political might.

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

#329

Post by jimmySixDOF »

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?

The business model at Groq basically morphed over time so the internal cloud was their only client and all purchases were on some revenue sharing basis to finance set up and operate the cloud business. So this has a bigger impact on those Cloud hardware operators to the extent they were involved in the discussions with Nvidia. Saudi Aramco comes to mind, as an early big check investor, who hosts much of the Groq Cloud today. So now Nvidia is their sole source supplier and the whole Tokens-as-a-Service business model they signed up for is re-negotiated ?

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

#330

Post by crote »

petcat wrote: post #306
idiotsecant wrote: post #276

Earlier quoted context omitted.

The employees are getting paid zero times.

do they make a salary

Startups often pay a shitty salary in exchange for a decent chunk of stock options, with the implicit promise that you'll make bank if you work hard and make the company successful.

Getting screwed out of your payout by such a totally-not-an-acquisition is wage theft. It's like promising a sales-related bonus at the beginning of the year, and then in December changing the metric to "AI-related sales to the CEO's golf buddies".

Post reply on HN