Nvidia and Groq: A $20 Billion Tech Swap

Nvidia is making a big move to boost its AI tech. They're not buying Groq, but they're paying a huge amount to use their technology. This deal is worth $20 billion. That's a lot more than what Groq was worth just a few months ago. Groq makes special chips for AI. These chips are really good at handling AI tasks. They use less power than regular graphics cards. This is because they have a special design that makes them super efficient.Nvidia plans to use Groq's chips in their own AI systems. This could make Nvidia's AI tech even better. Groq will keep running as a separate company, but Nvidia will get to use their tech. Groq also has a cloud service. It lets people use their AI chips and tools. They expected to make $500 million this year. That's not bad for a startup. This deal is a smart move for both companies. Nvidia gets better tech without buying Groq outright. Groq gets a big payday and can keep doing their thing.