Nvidia’s Groq Deal Weaponizes Latency, Pressuring Cloud Giants & GPU Rivals

Nvidia’s $20 billion manufacturing deal to bring Groq’s LPU-based racks online this year signifies a major strategic pivot from raw training power to ultra-low-latency inference. This move directly targets the emerging market for real-time AI applications, where sub-second response times are critical, fundamentally challenging the GPU’s dominance in all AI workloads. By controlling the production of its most potent inference competitor, Nvidia neutralizes a direct threat while simultaneously creating a new, high-margin revenue stream. This mirrors Google