Nvidia Strikes $20 Billion Licensing Deal with AI Chipmaker Groq, 90% of Employees Join Tech Giant

Nvidia secures a massive $20 billion licensing deal with AI chipmaker Groq in an unusual structure that sees 90% of Groq's workforce joining the tech giant while shareholders receive substantial payouts, cleverly sidestepping antitrust concerns through the non-exclusive arrangement.

• Nvidia strikes a $20 billion non-exclusive licensing deal with AI chipmaker Groq, with most Groq shareholders receiving handsome per-share distributions tied to the valuation
• Around 90% of Groq employees join Nvidia and receive cash payouts for vested shares plus Nvidia stock for unvested shares, while remaining employees get cash plus participation in the continuing company
• The unusual structure allows both companies to avoid potential antitrust issues while ensuring all stakeholders receive significant financial returns from the $20 billion valuation