Nvidia acquires Rock Assets for $20 billion... Reshaping the AI chip competition landscape

NVIDIA has finalized the acquisition of Lock’s core assets for approximately $20 billion in cash. This is the largest asset acquisition in NVIDIA’s history. Lock is an AI chip startup founded by key personnel from Google’s TPU development team, and has been recognized for its low-latency AI inference chips.

Why NVIDIA Needed Low-Latency Inference Chips

Low-latency( technology is a key factor in dramatically improving the response speed of AI services. Especially in fields requiring real-time AI inference, Lock’s processor architecture has attracted industry attention. The background for NVIDIA’s acquisition is part of a strategy to upgrade its AI platform to the next level. By integrating Lock’s low-latency inference chip technology into its platform, NVIDIA can further strengthen its performance advantage over competitors.

Lock Will Survive as an Independent Entity

An interesting point is that NVIDIA is not acquiring Lock entirely. According to a CNBC report cited by PANews on December 25, the deal with Lock is defined as a “non-exclusive technology licensing agreement.” Lock’s cloud business, GroqCloud, is excluded from the acquisition scope, and Lock will continue to operate as an independent legal entity with CFO Simon Edwards as its new CEO. However, founder and former CEO Jonathan Ross will join NVIDIA.

Why a Technology Licensing Approach Instead of a Full Acquisition

NVIDIA clarified the nature of this deal. They will integrate Lock’s low-latency processor architecture technology into their AI platform but will not fully absorb Lock. This means Lock will continue to have opportunities for collaboration with other companies in the future. The reason GroqCloud’s cloud service remains independent is also an extension of this strategy. Ultimately, NVIDIA designed a structure that secures Lock’s core technology while respecting Lock’s independence.