The analysis here is excellent. However, Groq's success was not obvious or straight forward. It require huge amounts of investment to keep it alive for many years long before any real positive cashflow. It was on its death bed for years before the ChatGPT moment in 2023. It has been over 9 years since its founding. If you know anything about VC funds and exit timelines, you will know that investors in Groq needed an exit by this time.

I'm happy that the investors and founders got a long and well deserved exit. I'm happy that the tech here will continue to see development and investment under Nvidia so we may one day get to use Claude Opus at 500 tokens per second.

Does it suck that certain employees got screwed over? Yes. Does this happen ALL THE TIME in startups? More often than you think. The expected value for employee options for this type of company is very very close to zero. Anyone who thinks otherwise is lying to themselves.

Does it suck that it didn't happen via a normal M&A process? As someone who used to work on tech M&As as an attorney, I would be first one to say that I hope this DOES become the norm. M&A sucks for the employees, the investors, the founders, the acquirers - it sucks for EVERYONE. The only people who it doesn't suck for are the lawyers and bankers who earn more fees the more complex and longer the process is. Best M&A I ever witnessed was the FB acquisition of Instagram that happened over the weekend (my old law firm was part of that deal).

Ask yourself: do you want to spend 2% of your funding round and 2 months on lawyers when you raise a $5m Series A? Then why do you want to do the same when you exit?