Nvidia to buy AI chip startup Groq for $20 billion, CNBC reports

NVIDIA’s $20 B Groq Acquisition: LPU Integration Blueprint for 2025 Enterprise AI { "@context":"https://schema.org", "@type":"Article", "headline":"NVIDIA’s $20 B Groq Acquisition: LPU Integration Blueprint for 2025 Enterprise AI", "datePublished":"2025-12-28", "author":{"@type":"Person","name":"[Your Name]"}, "keywords":["NVIDIA Groq acquisition","NVIDIA LPU","enterprise AI inference"], "description":"Explore how NVIDIA’s 2025 acquisition of Groq and its low‑latency LPU reshapes enterprise inference." } / minimal styling for readability / body{font-family:Arial,Helvetica,sans-serif;line-height:1.6;margin:2rem;} h1,h2{color:#003366;} ul,ol{margin-left:1.5rem;} table{border-collapse:collapse;width:100%;margin-top:1rem;} th,td{border:1px solid #ccc;padding:.5rem;text-align:left;} NVIDIA’s $20 B Groq Acquisition: LPU Integration Blueprint for 2025 Enterprise AI Published on December 28, 2025 – last modified December 29, 2025 In late December 2025, NVIDIA announced a landmark transaction that reshaped the AI hardware landscape: an acquisition of Groq’s assets and talent for $20 billion . The deal is not a conventional buyout; it blends an acqui‑hire with a non‑exclusive licensing agreement for Groq’s Language Processing Unit (LPU) technology. For enterprise architects, product managers, and hardware engineers, the implications are profound. Read our deep dive on LPU architecture to see how the chip achieves 10× speed with 90% lower energy consumption—an insight that can inform your own inference strategy. Executive Summary Deal Structure: Asset purchase + acquihire; non‑exclusive LPU license. Technology Edge: Groq’s LPU delivers 10× faster throughput and 90% lower energy per token versus GPU baselines. Strategic Benefit: NVIDIA gains a low‑latency inference accelerator without the regulatory burden of a full acquisition. Business Impact: Potential to cut per‑token inference costs by ~90%, unlock new pricing tiers, and accelerate cloud service differentiation. Action I