Nvidia's Big Bet on AI: A $20 Billion Chip Chase

Nvidia just made a huge move in the AI world. They're buying Groq, a startup that makes special chips for AI. This is Nvidia's biggest deal ever. It's worth $20 billion in cash. That's a lot of money! Groq won't disappear though. They'll keep running on their own. But some key people from Groq will join Nvidia. They'll help Nvidia use Groq's tech. Nvidia wants to use Groq's chips in their AI systems. These chips are really good at quick tasks. So, Nvidia thinks they'll help with AI work that needs to be fast.Nvidia is doing well right now. They make chips that power many AI models. Their sales are up a lot. In the third quarter of 2025, they made $57 billion. That's more than expected. Their CEO, Jensen Huang, said their chips are in high demand. He even said their cloud GPUs are sold out. This deal shows Nvidia wants to stay ahead in AI. They're investing big in new tech. It's a smart move, but it's also risky. AI is changing fast. Nvidia needs to keep up. Time will tell if this deal pays off.