Bitcoin and AI Tokens Rally After Nvidia’s $20B Groq Inference Deal

Bitcoin and leading AI-focused cryptocurrencies surged after Nvidia announced a landmark $20 billion artificial intelligence inference technology deal with AI chip startup Groq, signaling accelerating convergence between AI innovation and the crypto market. The announcement, made on December 24, reignited investor optimism across both sectors, pushing Bitcoin close to the $88,000 level while driving strong rebounds in several AI-related tokens.

According to the official disclosure, Nvidia entered into a non-exclusive licensing agreement with Groq to scale high-performance, cost-efficient AI inference technology. The deal underscores Nvidia’s strategic push to expand global access to advanced AI infrastructure, particularly as demand for inference computing grows rapidly across industries such as cloud computing, blockchain, and decentralized AI networks.

As part of the agreement, Groq founder and CEO Jonathan Ross, president Sunny Madra, and other key Groq executives will collaborate closely with Nvidia to accelerate development and deployment of the licensed technology. Importantly, Groq will remain an independent company, with Simon Edwards assuming the role of Chief Executive Officer. GroqCloud services will also continue operating without disruption, maintaining continuity for existing users and partners.

The news had an immediate impact on crypto markets. Bitcoin climbed nearly 1% intraday, reaching a high of $87,956 before stabilizing around $87,741, rebounding from lows near $86,400. While overall trading volume remained subdued due to uncertainty surrounding a massive $23 billion Bitcoin options expiry, sentiment-driven buying helped support prices. Analysts note that U.S.-based entities are currently among the largest Bitcoin sellers, while Asian investors are increasingly buying dips, reflecting shifting global capital flows. Bitcoin ETF outflows have also influenced short-term price action.

Meanwhile, AI and blockchain-related tokens posted notable gains. Bittensor (TAO) jumped more than 6% to $224, while Chainlink (LINK) and Near Protocol (NEAR) also rebounded strongly. Smaller AI-focused tokens such as VIRTUAL and BAT surged over 4% and 11%, respectively, alongside increased demand for GRT, INJ, ICP, LPT, IP, and FET. The Nvidia-Groq deal has reinforced expectations that AI adoption will fuel growth in decentralized computing, AI crypto projects, and blockchain-based infrastructure, strengthening the long-term narrative for AI-crypto convergence.