NVIDIA (NVDA)’s $20 Billion Groq Bet Goes Live This Year With New AI Racks

NVIDIA Corporation (NASDAQ:NVDA) has launched its $20 billion acquisition of Groq's assets this year, deploying its new Groq 3 LPX rack alongside its Vera CPUs and Rubin GPUs at cloud provider Nebius. The rack is part of the commercialization of Groq's technology, which was bought in December for the largest deal on record. Each LPX rack houses 256 Groq chips and can process 3,400 tokens per second, surpassing OpenAI's promised 750 tokens per second for its Cerebras-powered Ultrafast mode.

The acquisition allows NVIDIA to expand its AI compute stack without significantly impacting its balance sheet, as it is strong enough to absorb the financial risk. LPX is a niche, low-latency inference product designed to pair with Nvidia's Vera and Rubin chips without requiring customers to change their CUDA workflows. The technology's adoption remains uncertain as only one cloud provider, Nebius, has confirmed deployment so far.

Despite the strategic significance of the acquisition, NVIDIA's financial results remain unaffected due to the relatively small cost of the investment. While some investors remain cautious about NVIDIA's diversification strategy, the move underscores the company's ability to rapidly integrate acquired technology and stay ahead in the competitive AI market.