Nvidia has agreed to acquire chip design firm Grok for $20 billion, in a move described by CNBC as the largest deal in the company's history.
Alex Davis, CEO of Disruptive, which led Groc's latest funding round, confirmed that the deal included all of the company's assets except for its cloud computing division.
In a press release, Groc said that Jonathan Ross and a number of senior executives will join Nvidia, while the company will continue to operate independently under the leadership of new CEO Simon Edwards.
A deal that complements Mellanox's legacy and raises the bar for competition
The deal comes after Nvidia’s 2019 acquisition of Mellanox for about $7 billion, reflecting the company’s continued expansion into AI infrastructure that goes beyond traditional GPUs.
GROCO aims to generate $500 million in revenue this year, amid a global surge in demand for high-performance modeling acceleration chips.
Deep investments fuel the chip race
Grock had raised $750 million three months earlier at a valuation of about $6.9 billion, with investors including BlackRock, Neuberger Berman, Samsung and Cisco, as well as Capital 1789, in which Donald Trump Jr. is involved.
