Monopoly? Never heard of her… - Jensen Huang 

In the most obvious kill the competition moves of all time, Nvidia just dropped a metric f*ck ton (read: $20B) to get its Groq on. Not Grok as in Elon’s “Grok” (sorry Elon mouth breathers), but Groq as in the little known startup founded by the same maniacs who built Google’s TPU… ka one of the few teams on Earth that actually knows how to challenge Nvidia at inference without lighting money on fire. They raised at a $6.9B valuation three months ago. And suddenly, Nvidia rolled up and said “Shut up and take my straight cash homie.”

(Source: CNBC) 

Now for all of the Karens screaming “antitrust” here, Nvidia was very careful on their Christmas splurge. See, they didn’t buy Groq. They are just doing a laundry list of Marty Byrd type magic like: Licensing all the important technology, hiring the founder, president, and senior leadership, scooping up all the good parts (think chips, IP, and brains), all while integrating the chips into Nvidia’s AI factory stack. So basically the same as buying them outright… but different… but still same LOL.

(Source: Giphy) 

Y tho?

Well, for one, this is  Jensen Huang playing chess while everyone else is arguing about checkers, Monopoly money, and whether AI is a bubble. Nvidia looked at the one startup that could actually mess with its inference margins and basically gave Groq and offer they couldn’t refuse. And two,  inference is where the real money is heading. Training gets the headlines. Inference prints cash. Groq specialized in ultra-low latency inference… which is the exact thing Nvidia needs as customers start asking uncomfortable questions like “Why does this cost so much?” Whereas now, Nvidia gets Groq’s tech, Groq’s people, and Groq’s roadmap… without the mess of a full acquisition or regulators screaming about monopolies. Curious, did Jensen hire Zuckerburg for a consultation on this? Asking for a friend… 

And yet, this is by far the largest deal Nvidia has ever done. Bigger than Mellanox. Bigger than anything in its history. And they’re still sitting on over $60B in cash like this was just a “wet their beak” moment. Meanwhile, Groq investors got the ServiceNow treatment going from IPO in 2026 maybe to… “I guess we’re all rich now?” in about one quarter. 

(Source: Giphy) 

Translation: Nvidia isn’t a company defending a moat… it’s a company filling it with concrete. Bigly. Of course, we’ll see how this turns out in the longrun, but it’s clear Obi-Huang Kenobi is willing to cash checks and snap necks in any which way he can. And this time, it just happened to be all Groq. Meaning, keep your eyes on this story and place your bets accordingly, friends. Until next time… 

At the time of publishing, Stocks.News holds positions in Google as mentioned in the article.