Groq, a rival to Nvidia in the AI chip race, has entered into a non-exclusive agreement with the Green Team, with a deal valued at $20 billion, roughly $13 billion more than Groq's last evaluation. Nvidia will also hire the firm's founder and CEO,

Nvidia has struck a non-exclusive licensing agreement with AI chip competitor Groq. As part of the deal, Nvidia will hire Groq founder Jonathan Ross, president Sunny Madra, and other employees.

NVIDIA shares climbed to $190.16 in overnight trading following the company's $20 billion licensing agreement with AI chip startup Groq.

A new type of dealmaking is on the rise in Silicon Valley as Nvidia reaches a non-exclusive deal with a chip startup and hires its top engineers.

While Nvidia dominates the market for training artificial intelligence models, Groq specializes in inference—the process where trained models respond to user requests. Inference is a more competitive space, with rivals such as Advanced Micro Devices, Cerebras Systems, and other startups vying for market share.

Nvidia just dropped $20 billion in cash to buy Groq, a chip startup that builds hardware for artificial intelligence. This is Nvidia’s biggest deal ever, beating its 2019 Mellanox purchase by nearly triple.

Intel Corp. shares fell after a report said Nvidia stopped a test using Intel's production process to make advanced chips. The report from from Reuters. Norah Mulinda reports. (Source: Bloomberg)