![[D] The Nvidia/Groq $20B deal isn't about "Monopoly." It's about the physics of Agentic AI.](https://www.tweakedgeek.com/wp-content/uploads/2025/12/featured-article-6458-300x171.png)
The Nvidia acquisition of Groq for $20 billion highlights a significant shift in AI technology, focusing on the engineering challenges rather than just antitrust concerns. Groq's SRAM architecture excels in "Talking" tasks like voice and fast chat due to its instant token generation, but struggles with large models due to limited capacity. In contrast, Nvidia's H100s handle large models well with their HBM memory but suffer from slow PCIe transfer speeds during cold starts. This acquisition underscores the need for a hybrid inference approach, combining Groq's speed and Nvidia's capacity to efficiently manage AI workloads, marking a new era in AI development. This matters because it addresses the critical challenge of optimizing AI systems for both speed and capacity, paving the way for more efficient and responsive AI applications.
