Monday, March 16

Nvidia launches Groq 3 AI chip and CPU server aimed at Intel during GTC 2026


Nvidia (NVDA) kicked off its GTC event in San Jose, Calif., on Monday, debuting a number of chips and platforms ranging from its all-new Nvidia Groq 3 language processing unit (LPU) to its massive Vera central processing unit (CPU) rack, designed to go head-to-head with offerings from Intel (INTC) and AMD (AMD).

All totaled, Nvidia said it’s rolling out five massive server racks, each serving different purposes inside AI data centers.

The biggest announcement of the lot, though, is the Nvidia Groq 3 chip. Nvidia announced it had entered into an agreement to license technology from Groq and hired founder Jonathan Ross, president Sunny Madra, and other members of the Groq team as part of a $20 billion deal in December.

Groq’s processors focus on AI inferencing, or running AI models. It’s what happens when you type something into OpenAI’s (OPAI.PVT) ChatGPT, Anthropic’s (ANTH.PVT) Claude, or Google’s (GOOG, GOOGL) Gemini and get a response.

Nvidia’s graphics processing units (GPUs) are multipurpose and can both train and run AI models, but as the AI market moves toward running models, ensuring the company has a dedicated inferencing chip has become paramount.

That’s where Groq 3 comes in.

FILE PHOTO: Nvidia CEO Jensen Huang speaks at a conference hosted by chip design software firm Synopsys in Santa Clara, California, U.S., March 11, 2026. REUTERS/Stephen Nellis/File Photo
Nvidia CEO Jensen Huang speaks at a conference hosted by chip design software firm Synopsys in Santa Clara, Calif., on March 11, 2026. (Reuters/Stephen Nellis) · Reuters / REUTERS

According to Nvidia vice president of hyperscale and high-performance computing Ian Buck, while Nvidia’s GPUs support far more memory than Groq 3, the LPU’s memory is faster. So the company is combining the performance benefits of both chips.

To do that, Nvidia is launching its Groq 3 LPX platform, a server rack powered by 128 individual Groq 3 LPUs. When used together with Nvidia’s Vera Rubin NVL72 rack the company says customers could see 35x higher throughput per megawatt of power and 10x more revenue opportunity.

“Optimized for trillion-parameter models and million-token context, the codesigned LPX architecture pairs with Vera Rubin to maximize efficiency across power, memory and compute. The additional throughput per watt and token performance unlocks a new tier of ultra-premium, trillion-parameter, million-context inference, expanding revenue opportunity for all AI providers,” the company said in a statement.

The LPX rack should help address concerns that Nvidia could eventually lose its edge in the AI race to upstart companies designing inference-focused processors.

In addition to the LPX, Nvidia revealed its Vera CPU rack. When Nvidia talks about its Vera Rubin superchip, it’s referring to three processors in one: a Vera CPU and two Rubin GPUs.

Now the company is breaking off Vera into its own standalone chip, which it will slot into dedicated Vera server racks that combine 256 liquid-cooled Vera chips into one system.

CPUs are becoming increasingly important as agentic AI — where autonomous and semiautonomous bots perform tasks on users’ behalf — begins to take off. While GPUs and LPUs are important for helping to power AI models, when AI agents go off to, say, browse a website or pull information from a spreadsheet, they’re relying on CPU performance.

The chips also play an integral part when it comes to data mining, personalization, and the analysis that provides context to a GPU and ultimately an AI model.

“Vera is the best CPU for agentic AI workloads,” Buck said. “We’ve designed a new kind of CPU, the Olympus core, engineered by NVIDIA for AI execution. Vera enables faster agentic responses under the extreme conditions for all of the agentic AI use cases and reinforcement learning.”

This isn’t the first time Nvidia has talked about its own CPU server. Last month, the company announced a deal with Meta (META) that will see Nvidia provide the social media giant with the largest-ever deployment of its prior-generation Grace CPUs.

But the Vera announcement serves as Nvidia’s effort to cement its status as not just a GPU company but also a CPU company, setting up a showdown with rival and collaborator Intel, as well as AMD, in the data center.

In addition to the Vera Rubin NVL72, Groq LPX, and Grace rack, Nvidia showed off its new storage rack system called the Bluefield-4 STX, which the company said improves performance compared to traditional storage racks. Nvidia also talked up its Spectrum-6 SPX networking rack.

The new offerings in Nvidia’s lineup should help the company keep expanding its data center revenue as demand for AI platforms continues to grow. The company reported data center revenue of $193.5 billion in its fiscal 2026, up from $ 116.2 billion in fiscal 2025.

And with hyperscalers like Amazon (AMZN), Google, Meta, and Microsoft (MSFT) set to spend $650 billion this year on AI capabilities, Nvidia is sure to see a good chunk of that.

Sign up for Yahoo Finance's Week in Tech newsletter.
Sign up for Yahoo Finance’s Week in Tech newsletter. · Yahoo Finance

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *