Nvidia · DOJ · New York · U.S. · The Register
It’s hard to argue that Nvidia didn’t strip the company for parts
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Despite this, Nvidia contends the deal is a great American success story.
Key facts
- At GTC in March, Nvidia unveiled its LPX racks, which are powered by 256 Groq-3 accelerators
- Nvidia CEO Jensen Huang promised Groq-3 combined with its Vera Rubin GPU racks would deliver optimal performance across the entire spectrum of inference workloads
- In late 2024, the company contributed its MGX rack designs to the Open Compute Project (OCP) making it possible for any chipmaker to put their chips in racks originally designed for Nvidia GPUs
- Nvidia spent a whopping $20 billion late last year to license Groq’s AI accelerator tech and hire away key members of its engineering team in an everything-but-the-kitchen-sink deal
Summary
Even if regulators did somehow unwind the $20B deal, there's a growing list of alternatives ready to take Groq's place, no merger required. Nvidia spent a whopping $20 billion late last year to license Groq’s AI accelerator tech and hire away key members of its engineering team in an everything-but-the-kitchen-sink deal. The acquihire technically left Groq’s core inference-as-a-service business intact, but was clearly architected in such a way as to fly under regulators' radar. This week, The New York Times reported that the US Department of Justice had launched an antitrust probe into the deal. It’s hard to argue that Nvidia didn’t strip the startup for parts.