Following the age old playbook of monopolies. https://www.arte.tv/en/videos/103517-001-A/capitalism-in-ame... (Use a vpn if outside EUR)
A free market is a regulated market. Otherwise you will end up with monopolies and a dead market.
Nvidia to buy assets from Groq for $20B cash
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Re: Nvidia to buy assets from Groq for $20B cash
#42Hopefully they plan to invest in the technology and not just eliminate a competitor.
They almost certainly plan to invest in the technology. One of the biggest threats to Nvidia is people developing AI-centric ASICs before they get there. Yes, Google has their TPUs and there are others around, but it's early on.
In some ways, it's not about eliminating a competitor. It's about eliminating all the competitors. Nvidia can use its resources to push AI ASICs farther faster than others, potentially cutting off a whole host of competitors that threaten their business. Nvidia has the hardware and software talent, the money, and the market position to give their AI ASICs an advantage. They know if they don't lean into ASICs that someone else will and their gravy train will end. So they almost certainly won't be abandoning the technology.
But that doesn't mean that it'll be good for us.
Re: Nvidia to buy assets from Groq for $20B cash
#43> 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?
From the press release, Nvidia now has a non exclusive license to the hardware.
Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer.
GroqCloud will continue to operate without interruption.
Re: Nvidia to buy assets from Groq for $20B cash
#44I don’t see how this isn’t anti trust but knowing this political climate, this deal will go through.
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Re: Nvidia to buy assets from Groq for $20B cash
#45Groq 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…
So it is not structured as an acquisition to avoid anti trust but effectively it probably is.
Re: Nvidia to buy assets from Groq for $20B cash
#46The absolute best case I can make for this: I think it’s pretty obvious at this point that Nvidia’s architecture has reached scaling limits - the power demands of their latest chips has Microsoft investing in nuclear fusion. Similar to Intel in both the pre-Core days and their more recent chips, they need an actual new architecture to move forward. As sits, there’s no path to profitability for the buyers of these chi…
NVIDIA and "no path to profitability" don't belong in the same zip code.
Re: Nvidia to buy assets from Groq for $20B cash
#47Earlier quoted context omitted.
There is no "antitrust regulation" in the US in 2025. (Until 2029) States are "not allowed" to regulate AI companies.
Care to give more details?
Re: Nvidia to buy assets from Groq for $20B cash
#48That's great, but LLMs are still not generating revenue.
Re: Nvidia to buy assets from Groq for $20B cash
#49This is the most blatant buy the competition move if i've ever seen one....
Re: Nvidia to buy assets from Groq for $20B cash
#50Groq 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…
So it is not structured as an acquisition to avoid anti trust but effectively it probably is.
Yes I'm sure that "non exclusive" partnership is exactly that, wink wink!