[altpaddle]

I do not understand this move by Nvidia, they are afraid of being out competed by this startup in their core competence of building chips for AI? They may be eliminating a competitor for now but this move will immediately many more AI chip startups to get founded

[reissbaker]

They're not eliminating a competitor, they're (effectively) acquiring a competitor. Nvidia's GPUs are great for training, and not bad for inference, but the custom chips are better for inference and Nvidia's worried about losing customers. Nvidia will no doubt sell custom Groq-like chips for inference now.

[blitzar]

> Nvidia will no doubt sell custom Groq-like chips for inference now.

For $0bn they could have sold an Nvidia-like chip for inference.

[sthuck]

groq is a series E hardware startup founded in 2016. It took them this long to be a potential threat, I'm not sure they are even an actual threat.

Even if this purchase causes 100 new hardware startups to be funded tomorrow, nVidia is perfectly fine with that. Let's see how many survive 5 years down the line

[baq]

the play is 10x faster inference leads to 100x demand give or take, which isn't a bad assumption at all if you ask me. the problem is actually fitting a good model onto hardware that fast.