Nvidia's Groq deal rattled Silicon Valley. Here are 5 other AI startups split apart in Big Tech's new deals. (www.businessinsider.com)

Nvidia has made waves in the tech industry by entering a non-exclusive licensing agreement with AI chip startup Groq, valued at $6.9 billion just three months ago. While the terms of the deal remain undisclosed, it has drawn criticism for leaving Groq's employees unprotected as the leadership team transitions to Nvidia but the company continues to operate independently. This move reflects a broader trend in Silicon Valley, where traditional acquisitions are becoming less common due to regulatory uncertainties, prompting companies like Nvidia to pursue alternative strategies to secure talent and technology. This licensing trend raises significant concerns about the changing landscape for startup employees, who traditionally have benefited from acquisitions. Critics argue that these newer models undermine the incentives for staff at startups, potentially diminishing the allure of joining innovative companies. The Groq deal mirrors other recent similar arrangements in the AI sector, such as Google's interest in Windsurf and Meta's significant investment in Scale AI, highlighting a shift in how big tech firms are navigating talent acquisition amid evolving regulatory landscapes. As these practices become more prevalent, their implications for employee morale and the future of startup culture are becoming increasingly critical topics of discussion.