Nvidia's Groq Deal: ASICs for AI Inference
Update: 2025-12-28
Description
Nvidias recent deal with AI startup Groq involves a non-exclusive licensing agreement for their Language Processing Unit tech and a talent grab. These LPUs, specialized for AI inference, are more efficient than Nvidias versatile GPUs for this task. Analysts view this as strategic, with Nvidia potentially seeing ASICs as the future. The deal avoids regulatory headaches and allows Nvidia to snag talent without full ownership. However, questions remain about integration with GPUs and the potential for others to license the tech. Nvidia aims for $213 billion in revenue for fiscal 2026, driven by data center dominance and upcoming Rubin chips. Checkout Solipillow.com
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