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A new type of dealmaking is on the rise in Silicon Valley as Nvidia reaches a non-exclusive deal with a chip startup and hires its top engineers.

Nvidia has agreed to license technology from AI startup Groq for use in some of its artificial intelligence chips, marking the chipmaker's largest deal and underscoring its push to strengthen competitiveness amid surging demand.

In addition to the nonexclusive licensing deal, Groq's founder and CEO Jonathan Ross, president Sunny Madra and other senior leaders "will join Nvidia to help advance and scale the licensed technology," the startup said in a blog post.

Nvidia (NASDAQ:NVDA) has become the face of the AI revolution. Its graphics processing units have powered the breakthrough advances in generative AI, enabling applications from chatbots to image generation and beyond.