Bitcoin and several AI-related cryptocurrencies experienced notable increases today in response to the announcement that Nvidia has finalized a substantial $20 billion deal with Groq, a startup specializing in artificial intelligence (AI) inference technology. This collaboration is expected to enhance AI adoption and further integrate AI with cryptocurrency initiatives.
On December 24, Nvidia revealed a non-exclusive licensing agreement with Groq pertaining to its advanced inference technology. This news reignited enthusiasm within both the AI and cryptocurrency markets, propelling Bitcoin closer to the $88,000 mark. The substantial deal emphasizes a collective ambition to broaden access to high-performance, cost-effective inference technology, facilitating the delivery of state-of-the-art AI infrastructure.
Key figures from Groq, including founder and CEO Jonathan Ross and president Sunny Madra, will join Nvidia to enhance and scale the licensed technology. Investors are eager for a forthcoming wave of innovation and integration within the tech landscape. Importantly, Groq will maintain its status as an independent entity, with Simon Edwards stepping in as Chief Executive Officer. GroqCloud will continue its operations seamlessly, as confirmed by Ross.
The partnership between Nvidia and Groq is poised to accelerate AI adoption across various sectors, potentially driving increased demand for decentralized computing and blockchain-based AI solutions. Following the announcement, Bitcoin surged nearly 1% to an intraday peak of $87,956, currently trading at $87,741 after rebounding from earlier lows of $86,411. Despite low trading volumes amidst concerns related to an upcoming $23 billion expiry of BTC options, market sentiment remains bullish.
Interestingly, reports indicate that the United States has emerged as the largest seller of Bitcoin, while Asian investors are actively purchasing during this dip. The price movements are reflective of prevailing market sentiment and the flow of capital, particularly highlighted by recent Bitcoin ETF outflows.
In addition to Bitcoin”s performance, major AI coins such as Chainlink (LINK), Bittensor (TAO), and Near Protocol (NEAR) saw significant rebounds, with TAO surging over 6% to reach $224. Other tokens in the AI sector, including VIRTUAL and BAT, exhibited strong gains of more than 4% and 11%, respectively. Furthermore, investments surged for several other AI coins, such as GRT, INJ, ICP, LPT, IP, and FET, reflecting robust demand from investors.
