NVIDIA Licenses Groq Technology and Hires Lead Engineers

According to reports from Reuters and Bloomberg on December 24–25, 2025, NVIDIA has entered into a strategic agreement with Groq, the startup famous for its ultra-fast Language Processing Units (LPUs). The deal includes non-exclusive licensing of Groq's architectural designs and the recruitment of a group of lead engineers into NVIDIA's ranks. This move is aimed at addressing NVIDIA's primary ecosystem weakness—real-time token generation speed, where Groq's architecture has held a significant advantage.

Analysts view this as a decisive blow to competitors trying to carve out a niche in specialized inference hardware. Integrating Groq's breakthroughs into future NVIDIA chip cycles will allow the company to offer the market not only superior training tools but also the fastest solutions for model inference. The market reacted with a surge in NVIDIA shares, while other AI chip startups now face the prospect of competing with the combined technological might of these two leaders.

Source: Reuters