Nvidia to buy assets from Groq for $20B cash • Hacker News Board

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

#61

Post by NaOH » Wed, Dec 24, 2025, 10:05 PM UTC

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=41162463 - Aug 2024 (12 comments)

Groq CEO: 'We No Longer Sell Hardware' - https://news.ycombinator.com/item?id=39964590 - April 2024 (149 comments)

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

#62

Post by ZiiS » Wed, Dec 24, 2025, 10:07 PM UTC

dwa3592 wrote: post #57

This doesn't make much sense- In September, Groq was valued at $7B. How is it that in 4 months it is being bought for $20B? Can someone with better understanding dumb this down for me please?

It only has to be overvalued by a lower multiple then NVidia; not undervalued.

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

#63

Post by la64710 » Wed, Dec 24, 2025, 10:10 PM UTC

fancyfredbot wrote: post #36

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…

Also Tsavorite scalable intelligence - their architecture seems to cover the broadest use cases and compatible with cuda

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

#64

Post by wmf » Wed, Dec 24, 2025, 10:11 PM UTC

scratchyone wrote: post #3

Uh oh, not good that a major Nvidia competitor with genuine alternative technology will no longer be competing... Chances this tech gets killed post-acquisition?

It may be more likely that Nvidia sells the LPUv2 at a price that doesn't threaten Rubin.

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

#65

Post by irl_zebra » Wed, Dec 24, 2025, 10:11 PM UTC

ronyfadel wrote: post #24

rvz wrote: post #16

Earlier 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?

I don't know specifically, but I think they're referring to the current USA administration's posture of approving anything, or pardoning anyone, in exchange for some cryptocurrency or similar big favour.

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

#66

Post by altpaddle » Wed, Dec 24, 2025, 10:11 PM UTC

I do not understand this move by Nvidia, they are afraid of being out competed by this startup in their core competence of building chips for AI? They may be eliminating a competitor for now but this move will immediately many more AI chip startups to get founded

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

#67

Post by irl_zebra » Wed, Dec 24, 2025, 10:11 PM UTC

asdfsfds wrote: post #48

That's great, but LLMs are still not generating revenue.

I pay $20/mo for Gemini, so they're generating at least that much in revenue!

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

#68

Post by siliconc0w » Wed, Dec 24, 2025, 10:11 PM UTC

Maybe the EU or individual states will sue under their own anti-trust laws will stop this - seems pretty clearly anti-competitive and probably a prelude of these over-valued companies using their stock to gobble up any possible competitor to consolidate even more.

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

#69

Post by iamacyborg » Wed, Dec 24, 2025, 10:12 PM UTC

NaOH wrote: post #61

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…

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

#70

Post by arisAlexis » Wed, Dec 24, 2025, 10:13 PM UTC

fancyfredbot wrote: post #36

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