NVIDIA's $20 Billion Groq Deal: Acquisition in Everything But Name
On December 24, 2025, NVIDIA announced what may be the most strategically brilliant deal in recent tech history: a $20 billion “licensing agreement” with AI chip startup Groq. But make no mistake—this is an acquisition in everything but name, and it reveals both the sophistication of Jensen Huang’s playbook and the growing consolidation of AI infrastructure.
The Deal Structure: A Masterclass in Regulatory Maneuvering
Jensen Huang was careful with his words: “While we are adding talented employees to our ranks and licensing Groq’s IP, we are not acquiring Groq as a company.”
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