By Mike MurphyNvidia's headquarters in Santa Clara, Calif.Nvidia Corp. has entered into a non-exclusive licensing agreement with AI chip maker Groq, and will acquire some of the startup's executive team.In a blog post, Groq said founder and CEO Jonathan Ross, President Sunny Madra and other personnel will be joining Nvidia (NVDA) &#34;to help advance and scale&#34; the licensed inference technology. &#34;The agreement reflects a shared focus on expanding access to high-performance, low-cost inference,&#34; Groq said.Earlier, CNBC had reported Nvidia was buying Groq outright for about $20 billion, citing Alex Davis, CEO of Disruptive, which led Groq's most recent funding round.But that report appeared to be overstating the deal. Groq said it will remain an independent company, GroqCloud will continue to operate as usual and that Simone Edwards will become its new CEO. When asked to comment on the apparent mixup, a Groq spokesperson referred to the company's blog post, which she said &#34;includes the factual terms of the agreement.&#34;An Nvidia spokesperson referred to the details of Groq's blog post as well.Disruptive did not immediately respond to a request for comment.Nvidia shares declined slightly Wednesday, but are up more than 40% year to date.Read more: Here's what Nvidia investors can look forward to in 2026-Mike MurphyThis content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.(END) Dow Jones Newswires12-24-25 1738ET

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Nvidia Corp. has entered a non-exclusive licensing agreement with AI chip maker Groq, acquiring some of its executive team to advance licensed inference technology. Groq will remain independent, with Simone Edwards as the new CEO. Earlier reports of Nvidia buying Groq for $20 billion were overstated. Nvidia shares slightly declined but are up over 40% year-to-date.

- Nvidia Corp. has entered a non-exclusive licensing agreement with AI chip maker Groq and will acquire some of its executive team.  
- Groq will remain independent, continuing operations with Simone Edwards as the new CEO, despite earlier reports of a $20 billion acquisition by Nvidia.  
- Nvidia's share price slightly declined but has increased over 40% year to date.

Groq execs to join Nvidia as part of AI-chip licensing deal