Groq Founder Reveals the $20 Billion NVIDIA Deal
2026-08-18 09:56:33
According to CoinMeta, the founder of Groq and former CEO Jonathan Ross recounted the behind-the-scenes story of NVIDIA's $20 billion deal. He originally visited Jensen Huang's office with the intention to purchase about 100,000 Blackwell GPU chips and presented a concept: AI data centers should not use the same hardware for all tasks. Training tasks, similar to large-scale freight transportation that requires "18 trucks" (GPU), are more suited to the flexible and efficient "minivans" (Groq's LPU chips). Three days later, Jensen Huang called back, and the valuation of Groq was cut in half to $3.5 billion. NVIDIA then participated in the funding round, with Groq raising an additional $350 million to reach a valuation of $3.5 billion, led by Disruptive. Groq was valued at $6.9 billion during its financing last September but has now dropped to nearly half that amount. The company's direction has completely changed, focusing on AI inference cloud services, and it has become a NVIDIA-certified cloud partner, planning to expand its data center capacity from 54MW to over 200MW by 2027. The new funds will support NVIDIA's accelerated computing clusters.
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Source:Internet
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