India, Dec. 25 -- Nvidia Corp. is said to have agreed to buy AI chip startup Groq for $20 billion cash, in what is potentially its biggest acquisition till date.

Groq is expected to alert its investors about the Nvidia deal later in the day, CNBC reported on Wednesday, citing Disruptive CEO Alex Davis who said "the deal came together quickly". His company led Groq's latest funding round that more than doubled its valuation to $6.9 billion. The acquisition includes all of Groq's assets, but its nascent cloud business is not part of the deal.

Founded in 2016, Groq designs AI inference chips to optimise pre-trained large language models. Its Founder CEO Jonathan Ross was one of the creators of Google's tensor processing unit-a custom AI ch...