Nvidia’s $20B Move: Buying Rivals Before They Can Compete 😱

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NVIDIA just dropped a cool $20 billion on a startup called Groq, because nothing says “we love competition” like buying them before they can even say “hello”. 🤡

Now, this isn’t the first time Nvidia has played this game-three months ago, they did the same with another startup. It’s like they’re collecting competitors like Pokémon. 🎮

Threefold Premium in Three Months with Trump Jr. Connection

The deal closed just three months after Groq raised $750 million at a $6.9 billion valuation-a round that included BlackRock, Samsung, Cisco, and 1789 Capital, where Donald Trump Jr. serves as a partner. Because nothing says “innovation” like having a Trump in the mix. 🤝

Groq CEO Jonathan Ross, a former Google engineer who helped create the search giant’s Tensor Processing Unit, will join Nvidia along with president Sunny Madra and other senior executives. The startup will continue operating independently under CFO Simon Edwards as its new chief executive. Because nothing says “independence” like being bought and then run by a new boss. 🧠

A Repeating Playbook

Nvidia’s strategy is as predictable as a soap opera. They buy the startup, take the tech, and leave the rest. It’s like they’re playing a game of “Tag” but with more money and fewer hugs. 💸

The Kobeissi Letter summarized Nvidia’s approach bluntly: “We will buy you before you can compete with us.” It’s not a threat; it’s a business plan. 🧾

Nvidia’s newest strategy:

“We will buy you before you can compete with us.”

There has never been a company like Nvidia.

– The Kobeissi Letter (@KobeissiLetter) December 24, 2025

Technical Edge and Competitive Pressure

Groq’s Language Processing Unit uses on-chip SRAM rather than external DRAM, enabling what the company claims is up to 10x better energy efficiency. This architecture excels at real-time inference but limits model size-a tradeoff Nvidia can now explore within its broader ecosystem. Because nothing says “power” like being the only one with the tech. 🏔️

The timing is notable. Google recently unveiled its seventh-generation TPU, codenamed Ironwood, and released Gemini 3, trained entirely on TPUs, to top benchmark rankings. Nvidia responded on X: “We’re delighted by Google’s success… NVIDIA is a generation ahead of the industry-it’s the only platform that runs every AI model.” When incumbents start issuing such reassurance statements, competitive pressure is clearly mounting. 🤡

Implications for Decentralized AI

While the deal has no direct impact on cryptocurrency markets, it reinforces the narrative driving decentralized AI computing projects. Platforms like io.net position themselves as alternatives to centralized AI infrastructure. Because nothing says “democracy” like a token-based system. 🎯

“People can put their own supply onto a network, whether that’s data centers or yourself with your laptop, contributing your available GPU power, and getting fairly compensated for it using tokenomics,” Jack Collier, io.net’s Chief Growth Officer, told BeInCrypto. The platform claims enterprise clients, including Leonardo.ai and UC Berkeley, have achieved significant cost savings. Because nothing says “efficiency” like paying with tokens. 🏦

However, the gap between narrative and reality remains wide. Nvidia’s acquisition of Groq’s low-latency technology further extends its technical lead, making it harder for any alternative to offer competitive performance. Because nothing says “dominance” like buying the competition. 🐾

The transaction also raises questions about independent AI chip development. Cerebras Systems, another Nvidia competitor preparing an IPO, may eventually face similar pressure. Whether it can remain independent or succumb to Nvidia’s financial gravity remains to be seen. Because nothing says “uncertainty” like a tech giant’s shadow. 🌑

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2025-12-25 04:12