NVIDIA Corporation (NASDAQ:NVDA) secures a $20 billion nonexclusive licensing agreement with Groq, allowing them to use Groq’s inference Language Processing Units (LPUs). Analysts at Bernstein believe this investment will enhance NVIDIA’s market position in the AI space, particularly in inference scaling. Groq founder and personnel will join Nvidia’s team.

NVIDIA’s focus on licensing Groq’s LPU IP is centered on inference, converting Al models into real-time applications. The $20 billion investment is seen as crucial for NVIDIA to maintain its market position as inference scales, potentially giving them a competitive advantage and restricting access to competitors.

NVIDIA Corporation (NASDAQ:NVDA) designs and sells specialized processors for various industries, including gaming, AI, data centers, professional visualization, and automotive. While NVDA is a solid investment, some AI stocks may offer greater upside potential and less downside risk.

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Read more at Yahoo Finance: NVIDIA (NVDA) Signs $20B Deal with Groq, Mizuho Reaffirms Outperform Rating