NVIDIA Deepens AI Push With $5 Bn Intel Stake, $20 Bn Groq Deal
By paying $23.28 per share, NVIDIA is giving its rival a major financial lifeline after years of missteps and futile attempts at breakthrough innovation. This comes after it agreed to buy AI chip startup Groq.
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NVIDIA is ending the year on a high note. The chipmaker has purchased Intel’s 214.7 million shares worth $5 billion, three months after it announced the strategic deal. By paying $23.28 per share, NVIDIA is providing its rival with a significant financial lifeline after years of missteps and unsuccessful attempts at breakthrough innovation.
US antitrust agencies have cleared NVIDIA’s investment in Intel, according to a notice from the US Federal Trade Commission earlier this month.
Last week, the Jensen Huang company announced it had agreed to buy AI chip startup Groq for a $20 billion cash deal, making it its largest acquisition to date.
The deal will give NVIDIA access to its specialized inference chips to optimise pre-trained large language models. Notably, all assets and operations will be a part of the deal, excluding Groq’s nascent cloud business.
Similar to Intel, the deal will be a turning point for the decade-old chip startup. Notably, in a podcast earlier this year, founder Jonathan Ross revealed that the company had nearly run out of cash, asking its staff to trade salaries for equity.
According to The Wall Street Journal, a transaction of $13 billion has already been completed, with the remaining amount expected to be wired in the coming months.
Groq is expected to generate $1.4 billion in revenue in 2026, up from $500 million in 2025 and $90 million in 2024. Its revenue growth can be largely credited to sovereign customers, including Saudi Arabia’s Aramco.
In November, NVIDIA reported a Q3FY26 revenue of $57.0 billion, up 22% from the previous quarter and up 62% Y-o-Y.
