Nvidia's Deal for Groq Is a Competitive Play -- Market Talk

Dow Jones12-30 00:35

1135 ET - Nvidia's deal for Groq is likely a move to bolster its positioning in inference, Truist analysts say in a research note. It comes after Broadcom said it will manufacture TPU-based systems for Anthropic, the first time the analysts observed a cloud-service provider's custom chips being sold outright to a third party. "Because Groq's leadership formerly worked on the TPU project, we believe Groq's LPU architecture is likely similar to that of the TPU," the analysts write. "We believe that Nvidia's further development of Groq's technology could make Nvidia's capabilities more appealing to high volume inference customers, and even more appealing than a cloud-service provider's solution, even if it muddies Nvidia's 'one platform' message somewhat." (connor.hart@wsj.com)

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December 29, 2025 11:35 ET (16:35 GMT)

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