Nvidia to License Technology from AI Chip Rival Groq and Appoint its CEO

Nvidia Enters Strategic Partnership with Groq to Boost AI Innovation

Nvidia has initiated a non-exclusive licensing agreement with AI chip competitor Groq. As part of this collaboration, Nvidia plans to onboard Groq founder Jonathan Ross, president Sunny Madra, and their team.

Nvidia’s Major Asset Acquisition from Groq

According to a report by CNBC, Nvidia is set to acquire assets from Groq for approximately $20 billion. However, Nvidia clarified to TechCrunch that this is not a complete acquisition of the company and refrained from commenting on the transaction’s full scope. If CNBC’s figures hold true, this deal could mark Nvidia’s largest purchase yet, solidifying its position in the chip manufacturing industry.

The Rise of AI Processing Power: Nvidia vs. Groq

As tech giants vie for supremacy in AI capabilities, the demand for robust computing power has soared. Nvidia’s GPUs are becoming the industry standard. In contrast, Groq is pioneering a novel chip known as an LPU (language processing unit), which it claims can execute large language models (LLMs) ten times faster while consuming just one-tenth of the energy. Groq’s CEO, Jonathan Ross, is renowned for his groundbreaking work; during his tenure at Google, he was instrumental in creating the tensor processing unit (TPU), a specialized AI accelerator.

Rapid Growth and Future Prospects for Groq

In September, Groq successfully secured $750 million at a valuation of $6.9 billion. The company’s expansion has been rapid, reporting that its technology now supports the AI applications of over 2 million developers, a significant leap from around 356,000 the previous year.

Updated, 12/24/25 at 5:40 p.m. ET, with clarification from Nvidia regarding the details of the deal.

Sure! Here are five FAQs about Nvidia’s decision to license AI chip challenger Groq’s technology and hire its CEO:

FAQ 1: Why is Nvidia licensing Groq’s technology?

Answer: Nvidia is licensing Groq’s technology to enhance its AI chip offerings. This partnership allows Nvidia to leverage Groq’s innovative architecture and design, potentially improving its competitive edge in the AI hardware market.

FAQ 2: Who is the CEO of Groq, and why is Nvidia hiring them?

Answer: The CEO of Groq is Tushar Athreya. Nvidia is hiring him to bring his expertise and vision to boost its AI initiatives. Athreya’s experience in chip design and architecture can contribute significantly to Nvidia’s ongoing developments in AI technologies.

FAQ 3: What impact could this partnership have on AI chip development?

Answer: This partnership could accelerate advancements in AI chip performance and efficiency. By integrating Groq’s technology, Nvidia may be able to enhance its product lineup, leading to faster processing speeds and better energy efficiency for AI tasks.

FAQ 4: How does Groq’s technology differ from Nvidia’s existing offerings?

Answer: Groq’s technology focuses on a unique architecture that emphasizes deterministic performance and efficiency. Unlike Nvidia’s GPU-centric approach, Groq’s chips are designed for high throughput and low latency in AI applications, which could complement Nvidia’s portfolio.

FAQ 5: What does this mean for the future of AI chip competition?

Answer: This move indicates a strategic positioning for Nvidia as AI chip competition intensifies. By acquiring Groq’s technology and leadership, Nvidia aims to strengthen its market position against emerging challengers, potentially reshaping the landscape of AI hardware development.

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Italy urges Meta to halt its ban on rival AI chatbots on WhatsApp.

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    <h2>Italy Orders Meta to Suspend WhatsApp AI Chatbot Policy</h2>

    <p id="speakable-summary" class="wp-block-paragraph">Italy has mandated Meta to halt its ban on using WhatsApp's business tools for AI chatbots, igniting discussions on market competition.</p>

    <h3>Italian Authorities Investigate Meta's Market Dominance</h3>
    <p class="wp-block-paragraph">The Italian Competition Authority (AGCM) announced on Wednesday that its ongoing investigation into Meta's practices revealed sufficient grounds to order the suspension of a policy that restricts companies from utilizing WhatsApp’s business tools for their AI chatbots.</p>

    <h3>Concerns Over Competitive Fairness</h3>
    <p class="wp-block-paragraph">According to the AGCM, “Meta’s conduct appears to constitute an abuse, since it may limit production, market access, or technical developments in the AI Chatbot services market, to the detriment of consumers.” They emphasized that ongoing actions by Meta could inflict serious, irreparable harm to competition within this sector.</p>

    <h3>AGCM Expands Investigation Following Policy Changes</h3>
    <p class="wp-block-paragraph">In November, the AGCM broadened its investigation into Meta after the company revised its <a target="_blank" rel="nofollow" href="https://techcrunch.com/2025/10/18/whatssapp-changes-its-terms-to-bar-general-purpose-chatbots-from-its-platform/">business API policy</a> in October. The update prohibited general-purpose chatbots from being offered on the platform via the API.</p>

    <h3>Meta Defends Its API Restrictions</h3>
    <p class="wp-block-paragraph">Meta contends that its API was never intended to serve as a platform for distributing chatbots, suggesting that consumers can access AI bots through numerous other channels. The upcoming policy change, effective January, will notably impact the availability of AI chatbots from various providers, including OpenAI and Perplexity.</p>

    <h3>Exceptions for Business-Specific AI Tools</h3>
    <p class="wp-block-paragraph">It is important to note that the policy does not affect businesses utilizing AI to assist customers on WhatsApp. For example, retailers using AI-powered customer service bots will still be able to leverage the API, while general chatbots like ChatGPT and Claude will be barred from distribution.</p>

    <h3>EU Investigates Meta's New Policy</h3>
    <p class="wp-block-paragraph">This month, the European Commission also initiated an investigation into Meta's recent policy change, expressing concerns that it may hinder third-party AI providers from offering their services within the European Economic Area (EEA).</p>

    <h3>Meta's Response Unavailable</h3>
    <p class="wp-block-paragraph">As of now, Meta has yet to respond to requests for comments regarding this situation.</p>
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Here are five FAQs regarding Italy’s directive to Meta about suspending its policy that bans rival AI chatbots from WhatsApp:

FAQ 1: What did Italy tell Meta regarding AI chatbots on WhatsApp?

Answer: Italy directed Meta to suspend its policy that bans rival AI chatbots from operating on WhatsApp. This decision aims to promote competition and innovation in the digital space.

FAQ 2: Why is Italy concerned about Meta’s policy?

Answer: Italy’s concerns revolve around fair competition and consumer choice. The restriction on rival AI chatbots could limit innovation and the development of diverse services that benefit users.

FAQ 3: How might this change affect WhatsApp users?

Answer: The suspension of the ban could lead to an influx of various AI chatbots on WhatsApp, offering users more options for interaction, enhancing their experience with diverse services and potentially lower costs.

FAQ 4: What are the implications for Meta if it does not comply?

Answer: If Meta fails to comply, it could face regulatory repercussions, including fines or further legal actions from Italian authorities. This could lead to more stringent regulations in the future.

FAQ 5: What could happen next in terms of AI chatbots on WhatsApp?

Answer: Following Italy’s directive, Meta may have to alter its policies, allowing rival AI chatbots to integrate with WhatsApp. This could encourage a more competitive environment, prompting innovative advancements within the platform.

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Groq, Nvidia AI Chip Rival, Reportedly Close to New Fundraising at $6 Billion Valuation

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<div>
<h2>Groq Secures $600 Million Funding in Bid to Double Valuation</h2>

<p id="speakable-summary" class="wp-block-paragraph">AI chip startup <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-07-29/ai-chip-startup-groq-nears-600-million-fundraising-deal" target="_blank" rel="noreferrer noopener nofollow">Groq</a> is negotiating a substantial $600 million investment that could elevate its valuation to nearly $6 billion, sources inform Bloomberg. The deal remains contingent, with terms still subject to change.</p>

<h3>Rapid Growth: Valuation Soars to New Heights</h3>
<p class="wp-block-paragraph">In August 2024, Groq <a target="_blank" href="https://techcrunch.com/2024/08/05/ai-chip-startup-groq-lands-640m-to-challenge-nvidia/">secured $640 million at a valuation of $2.8 billion</a>. This latest round signifies a remarkable doubling of its valuation in just one year. To date, Groq has raised approximately $1 billion.</p>

<h3>Led by Disruptive: A New Investment Round Emerges</h3>
<p class="wp-block-paragraph">The upcoming funding round is spearheaded by Austin-based venture firm Disruptive, as reported by Bloomberg. The previous round in November was led by BlackRock, with notable participation from firms including Neuberger Berman, Type One Ventures, Cisco, KDDI, and the Samsung Catalyst Fund.</p>

<h3>Founding Vision: From Google to Groq</h3>
<p class="wp-block-paragraph">Founded by Jonathan Ross, a former Google engineer known for developing the Tensor Processing Unit chip, <a target="_blank" href="https://techcrunch.com/2018/09/05/secretive-semiconductor-startup-groq-raises-52m-from-social-capital/">Groq emerged from stealth mode in 2016</a>. The company is focused on revolutionizing AI infrastructure with its cutting-edge semiconductor technology.</p>

<h3>Strategic Partnerships: Powering AI Initiatives in North America</h3>
<p class="wp-block-paragraph">This latest fundraising comes on the heels of Groq's <a target="_blank" href="https://www.prnewswire.com/news-releases/groq-becomes-exclusive-inference-provider-for-bell-canadas-sovereign-ai-network-302467175.html" target="_blank" rel="noreferrer noopener nofollow">exclusive announcement in May</a> regarding a partnership with Bell Canada, aimed at facilitating a significant AI infrastructure project. Furthermore, in April, Groq <a target="_blank" rel="nofollow" href="https://groq.com/news/meta-and-groq-collaborate-to-deliver-fast-inference-for-the-official-llama-api">collaborated with Meta</a> to enhance AI infrastructure for accelerated Llama 4 inference. Both Disruptive and Groq have not yet responded to requests for comment.</p>

<p><em>Correction: The original story incorrectly reported the date of the last fundraising round.</em></p>
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Here are five frequently asked questions (FAQs) about Groq, the AI chip company in the context of its recent developments and fundraising efforts:

1. What is Groq, and what products does it offer?

Answer: Groq is a technology company focused on developing AI chips designed for high-performance computing tasks. Its products leverage a unique architecture to accelerate machine learning and AI applications, targeting industries like automotive, healthcare, and data centers.

2. Why is Groq seeking new fundraising, and what is the expected valuation?

Answer: Groq is seeking new fundraising to further enhance its R&D capabilities, expand its product line, and scale operations. The company is reported to be nearing a valuation of $6 billion, indicating strong investor interest and confidence in the potential of its technology.

3. How does Groq compare to other AI chip manufacturers like Nvidia?

Answer: While Nvidia is a well-established leader in the AI chip market, Groq presents itself as a challenger by focusing on optimized architectures that cater specifically to AI workloads. Groq’s chips are designed to deliver high performance with lower latency, positioning them as a viable alternative for customers looking for specialized AI solutions.

4. What industries could benefit from Groq’s technology?

Answer: Groq’s AI chips could benefit various industries, including automotive (for autonomous driving), healthcare (for medical imaging and diagnostics), finance (for fraud detection), and telecommunications (for network optimization), among others.

5. What are the implications of Groq’s valuation for the AI chip market?

Answer: Groq’s $6 billion valuation signifies robust investor confidence in the AI chip sector, highlighting the increasing demand for specialized chip technology in AI applications. This development may encourage further investment in innovative startups within the industry, potentially accelerating advancements in AI technology.

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Allen AI’s Tülu 3 Unexpectedly Emerges as a Rival to DeepSeek.

Unlocking the Future of AI: Tülu 3 Challenges the Status Quo

Recent headlines have been captivated by DeepSeek’s groundbreaking models, but a new player has quietly entered the ring. Allen AI’s Tülu 3 family of models, including a 405B parameter version, is not just keeping up with DeepSeek – it’s setting new standards in AI research.

A Game-Changer in AI Development

The 405B Tülu 3 model is taking on heavyweights like DeepSeek V3, and the results are impressive. From math problems to coding challenges and precise instruction following, Tülu 3 is holding its own – and it’s doing it all with transparency.

Breaking Down the Technical Battle

What sets Tülu 3 apart? It’s all about the innovative four-stage training process that goes beyond the norm. Let’s dive into how Allen AI crafted this powerhouse model:

Strategic Data Selection: Tülu 3 starts with quality data, curated for specific skills like mathematical reasoning and coding proficiency.

Building Better Responses: Allen AI trained Tülu 3 with targeted data sets to identify strengths and weaknesses in various tasks.

Learning from Comparisons: Using length-normalized DPO, Tülu 3 values quality over quantity in responses, leading to precise and purposeful communication.

The RLVR Innovation: By replacing subjective reward models with concrete verification, RLVR ensures Tülu 3 prioritizes accuracy over elaborate responses.

A Glimpse into the Numbers

Achieving parity with top models, Tülu 3 shines in math, coding, and precise instruction following. Its verifiable rewards approach has elevated its performance to rival even closed models, making it a game-changer for open-source AI.

Unveiling AI Development’s Black Box

Allen AI’s commitment to transparency extends beyond just releasing a powerful model – they’ve opened up their entire development process. This level of access sets a new standard for high-performance AI development, offering invaluable resources for developers and researchers.

Paving the Way for Open Source Excellence

Tülu 3’s success signals a significant moment in open AI development, challenging private alternatives and driving industry-wide innovation. With a foundation in verifiable rewards and multi-stage training, the potential for further advancements is vast, marking the dawn of a new era in AI development.

For more information on Tülu 3, check out the Frequently Asked Questions section below.

  1. Q: What is Allen AI’s Tülu 3?
    A: Allen AI’s Tülu 3 is an advanced artificial intelligence system built for natural language understanding and processing.

  2. Q: What is DeepSeek and how does it relate to Tülu 3?
    A: DeepSeek is a competitor to Allen AI’s Tülu 3 in the field of artificial intelligence. It has recently emerged as an unexpected rival to Tülu 3.

  3. Q: What sets Tülu 3 apart from other AI systems?
    A: Tülu 3 is known for its superior performance in natural language processing tasks, making it a strong contender in the AI market.

  4. Q: How does DeepSeek compare to Tülu 3 in terms of capabilities?
    A: While both DeepSeek and Tülu 3 are advanced AI systems, they may have different strengths and weaknesses in specific tasks or applications.

  5. Q: How can users benefit from the competition between Tülu 3 and DeepSeek?
    A: The competition between Tülu 3 and DeepSeek is likely to drive innovation and push both companies to improve their AI technologies, ultimately benefiting users with more advanced and powerful products.

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