51–60 of 207 posts
The writing style here is so belittling, and frankly stupid. E.g. "billion is so big!", uh, I've heard of a billion before, and then comparing the value of a company to a single person's salary, as if that was very relevant.
> I don't understand how market regulators allow this. The US government is literally for sale. Businesses know that this window is limited and are executing antitrust manuvers left and right while they can.
Ya well, startups are just low risk R&D facilities in service of big tech now https://centreforaileadership.org/resources/opinion_startups...
Earlier quoted context omitted.
Well usually they only get acquired when they have something the purchaser wants, revenue was obviously not the get here
I don't exactly disagree. But the word "obvious" doesn't work very well during a bubble. Sure, yes, the current revenue doesn't justify the purchase price. But that doesn't mean that anything justifies the purchase price. We can't work backward rationally from "this deal makes sense" and get to "here's why". Corporate acquisitions often don't work that way, even when there's no bubble. The price is often just not jus…
> To visualize $1.5 billion: if you cashed that check out in $100 bills and stacked them one on top of another, it would reach a five story building. For ordinary plebeians like us, at the average US salary of around $75K, you’d need to work 20,000 years to earn that. No, we don't need to visualize that.
It certainly isn’t a “panic” as nvidia is so flush with cash. This is a minuscule amount of money for them.
It's a shame. Groq was really great. Nvidia is stifling innovation here. I don't understand how market regulators allow this.
I don't share your view. Groq continues to exist. Nvidia did not take any or their hardware, so the same Groq you access on OpenRouter will exist tomorrow or one year from now. If anything, they'll significantly increase their presence, since they just got $20 billion in cash.
As for Nvidia stifling innovation: one can argue that they do the opposite. They hired key personnel from Groq (including their founder and CEO, Jonnathan Ross). These people agreed to the move, presumably for the money, but most likely also because they think they can deliver even more if they have access to Nvidia's resources. So, in terms of overall innovation, it will most likely go up.
But you can say that they stifle independent innovation. Maybe, but the case for that is not that open and shut as it might seem. They entered a non-exclusive licensing agreement with Groq. Which means Groq can provide their "secret sauce" to other interested entities, maybe Apple, maybe Intel or AMD, maybe OpenAI, maybe Oracle. The number of companies who could be interested in their tech is quite high.
Or simply, Groq, with the many billions in unencumbered cash they just received will decide to go for version 2.0 of their tech, or they can significantly expand the GroqCloud. Their valuation just went from $6.5B to significantly higher than $20B. They can pursue an IPO, or they can issue debt. There are countless possibilities for Groq now.
Ya well, startups are just low risk R&D facilities in service of big tech now https://centreforaileadership.org/resources/opinion_startups...
Also many of Google’s flagship products come from acquisitions. Eg Android, Docs, YouTube, their entire ad network, Firebase, DeepMind, lots more.
This isn’t easy! Equally famously, Microsoft routinely botches acquisitions, eg Skype, Nokia etc. Seems to me the only MS acquisitions that don’t fail are the ones they mostly leave alone (eg LinkedIn, GitHub).
Earlier quoted context omitted.
Go talk to someone outside of tech this week, preferably someone working in the trades or something else that's less dependent on a computer, and ask them about their AI use. You'd be surprised how new a lot of the tech concepts in this article are to people that might have only heard of ChatGPT. That is who I'm writing for.
And they aren’t reading you, so lots of wasted words.
> Then in maybe one of the best rug pulls of all time, in July they quietly changed their valuation to $500 million. A 75% cut in four months. I’ve never seen anything like that since the 2008 financial crisis. Not sure where the author is getting their information from but there is seemingly little correlation between the investment rounds quoted in this post and other online sources. No mention for example of the S…
Thank you for calling this out. I have edited and added a footnote there. Their valuation wasn't 500mil it was their revenue projection. The 6.9bn valuation is accurate though https://www.prnewswire.com/news-releases/groq-raises-750-mil... https://www.reuters.com/business/groq-more-than-doubles-valu...
Edit: some searching about suggests that Groq initially projected $2 billion in revenue for 2025, later cutting that forecast to $500 million. That appears to have be what this article is trying to say.
https://www.investing.com/news/company-news/groq-slashes-202...