LPU vs GPU: Nvidia Strengthens AI Dominance Through Groq Innovation

This is not an acquisition, but a non-exclusive technology licensing and talent transfer agreement. According to US media CNBC, the deal may involve assets worth around $20 billion, potentially the largest in Nvidia’s history.

Groq produces LPU (Language Processing Unit) chips, claimed to run large language models 10 times faster than conventional systems while using only a fraction of the power. Groq’s CEO Jonathan Ross is known for his role in developing Google’s TPU (Tensor Processing Unit), a foundational AI accelerator chip.

Groq raised $750 million in funding in September 2025, valuing the company at approximately $6.9 billion. Over a year, the number of developers using Groq’s technology has grown from around 350,000 to 2 million. Analysts believe that Nvidia’s partnership with Groq will further solidify its dominance in the AI chip market and introduce a new dimension to AI hardware competition.