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International Business Times UK
International Business Times UK
Anna Katrina Sevilla

Nvidia's $20 Billion Groq Deal Fuels Fears of AI Chip Monopoly

Nvidia and Groq close an acquisition deal of $20 Billion - AI firms fear monopoly. (Credit: Pexels)

Nvidia has agreed to a $20-billion (£15.8 billion) acquisition cash deal with Groq, AI inference pioneer, which includes the latter's assets. In a report by CNBC on 24 December 2025, Disruptive CEO Alex Davis said the deal was swiftly finalised. The non-exclusive licensing deal involves the acquisition of Groq's technology and moving Groq's senior executives to Nvidia.

Groq's specialisation is in 'inference', which is how artificial intelligence responds to user requests. It delivers affordable and highly competent inference, which is referenced by Groq in its website as 'fuel for AI'.

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