Nvidia made a $20 billion deal with Groq for inference chip technology, compensating Groq’s stockholders and employees without an equity exchange. About 90% of Groq employees will join Nvidia, receiving cash for vested shares and Nvidia stock for unvested equity, with faster payouts for some. New hires also benefit from the deal. Everyone gets paid, and Groq remains independent with CEO Simon Edwards leading the way. The move reflects a trend of Big Tech seeking licensing deals for talent and making AI infrastructure advancements. Bank of America analysis predicts significant chip growth in 2026, with Nvidia poised to benefit. Investors should monitor the financial implications in 2026, as Groq stakeholders receive cash upfront, mid-year, and end of year, impacting GAAP results. Overall, AI-driven dealmaking is evolving with a focus on acquiring essential IP, retaining talent, and ensuring independence. Major AI companies, like Nvidia, are expanding rapidly in 2026, potentially outpacing regulators and setting new trends for the industry.

Read more at Yahoo Finance: Nvidia’s $20 billion Groq play is a blueprint for 2026