NVDA Will Roll Over If Groq Succeeds
One would think that as Groq scales, it is bad news for Nvidia. Groq positions itself as enabling world-class inference without having to buy the latest and greatest chip set (from Nvidia or anyone else). Groq promises superior chip efficiency, lower cost, and superior LLM inference. At the end of the day, the LLM game is all about inference.
At some point we will see vertical-specific LLMs proliferate. These LLM companies will want to optimize LLM inference while minimizing hardware cost. This will be especially true as LLMs get pushed out to the edge of the network and pushed onto devices. LLM vendors are not in business to create the largest, most expensive LLMs. Rather, the LLM business is about maximizing performance (inference) and minimizing cost.
Thus, if Groq can gain traction by consistently delivering world-class inference with its proprietary chip array, it would seem NVDA may soon be a hard short. If Groq goes up, NVDA must come down.