alt Hacker News> Groq is expected to alert its investors about the deal later on Wednesday. While the acquisition includes all of Groq’s assets, its nascent Groq cloud business is not part of the transaction, said Davis.
Wait, what? How is the cloud business supposed to run if Nvidia is acquiring the rights to the hardware?
Replies
fancyfredbot • yesterday at 9:53 PM
From the press release, Nvidia now has a non exclusive license to the hardware.
Groq will continue to operate as an independent company with Simon Edwards stepping into the role of Chief Executive Officer.
GroqCloud will continue to operate without interruption.
It isn't, and the other companies that offer cloud AI that Nvidia has invested in can carry on happy they have one less competitor.
This is how business works in the 21st century - once one company has a dominant position and a massive warchest they can just buy any business that has any potential of disrupting their revenue. It's literally the thesis Peter Thiel sets out in Zero To One. It works really well for that one business.