<div id="readability-page-1"><p>Semiconductor giant Nvidia (NVDA) is taking another step in artificial intelligence, this time focused on inference, where AI models give answers to users. On Wednesday, Nvidia said it will license chip technology from AI startup Groq and hire several senior leaders from the company, including founder Jonathan Ross and President Sunny Madra. Financial details were not shared.</p><h3>Claim 70% Off TipRanks This Holiday Season</h3><ul><li>Unlock  hedge-fund level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The deal is a &#34;non-exclusive&#34; license, so Groq can still work with other partners. Groq said it will continue to run as a separate company. Simon Edwards will take over as CEO, and the company's cloud business will continue.</p> <h2><strong>Why Groq's Technology Stands Out</strong></h2> <p>Groq builds inference chips designed for speed. Its chips use on-chip memory instead of external high-bandwidth memory, which helps AI systems respond faster. This limits the size of models that can run on the chips, but it allows quicker responses as AI tools see wider use.</p> <p>The design has drawn interest as companies look for faster and lower-cost ways to run AI applications. Meanwhile, Groq's valuation has risen sharply this year, showing growing demand for alternatives in inference.</p> <h2><strong>Big Tech Turns to Licensing and Talent Deals</strong></h2> <p>Nvidia's deal with Groq reflects a wider shift across Big Tech. Instead of full takeovers, companies are choosing licensing deals and direct leadership hires. This helps them bring in new technology and talent without the extra regulatory scrutiny that often comes with buying a company.</p> <p>In recent examples, Microsoft (MSFT) brought in its top AI executive through a $650 million licensing deal, while Meta Platforms (META) spent $15 billion to hire Scale AI's CEO without buying the firm. Amazon (AMZN) hired founders from Adept AI, and Nvidia earlier invested $900 million to hire AI hardware startup Enfabrica's CEO Rochan Sankar and his team, while also licensing its technology.</p> <p>Regulators have reviewed these deals, but none have been stopped so far.</p> <h2><strong>What Is a Good Price for NVDA?</strong></h2> <p>Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $263.58 per share implies 39.8% upside potential.</p></div>

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<p>Nvidia is advancing in AI by licensing chip technology from Groq and hiring its senior leaders, including founder Jonathan Ross. This non-exclusive deal allows Groq to continue independently. Groq's inference chips, known for speed, have gained interest. Nvidia's move reflects a trend in Big Tech towards licensing and talent acquisition over full takeovers, avoiding regulatory scrutiny. Analysts maintain a Strong Buy rating on NVDA stock, with a price target suggesting a 39.8% upside.</p>

- Nvidia has announced a licensing deal with AI startup Groq to enhance its artificial intelligence capabilities focused on inference technology.  
- The deal allows Groq to continue collaborating with other partners while maintaining its independence, and their chips are noted for speed due to on-chip memory design.  
- Analysts have a Strong Buy consensus on Nvidia (NVDA) with a price target of $263.58, indicating significant upside potential in the stock.

'No Buyout Here': Nvidia Licenses Groq Tech, Adds AI Leaders