Summary Table
| Key Aspect | Details |
| Funding Raised | $750 million |
| Post-Money Valuation | $6.9 billion |
| Previous Valuation | $2.8 billion (Series D, 2024) |
| Founder/CEO | Jonathan Ross (former Alphabet engineer) |
| Founded | 2016 |
| Headquarters | Silicon Valley, California |
| Core Product | AI inference chips (LPUs) |
| Key Strategic Deals | $1.5B contract with HUMAIN (Saudi Arabia) |
| Global Expansion | Helsinki data center live |
| Lead Investor | Disruptive |
| Other Notable Investors | BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung, Cisco, Altimeter, West Coast mutual fund |
| Target Market | AI inference for pre-trained models; enterprise and cloud customers |
| Sector Growth Outlook | AI chip market projected to reach $400B annually within five years |
AI chip startup Groq has raised $750 million, more than doubling its valuation to $6.9 billion, as investors bet on specialized inference hardware to complement Nvidia’s GPU dominance. The round, led by Disruptive with backing from BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung, Cisco, Altimeter, and a large West Coast U.S. mutual fund, will accelerate production, global expansion, and infrastructure buildout.
Company Overview
Founded in 2016 by former Alphabet engineer Jonathan Ross, Groq focuses on AI inference chips (Language Processing Units, LPUs) designed to run pre-trained AI models quickly and cost-efficiently. The company is carving a niche in inference hardware, distinguishing itself from Nvidia’s training-heavy GPU market. Groq has launched its first European hub in Helsinki to meet growing demand.
Funding & Investors
- Funding Raised: $750 million
- Post-Money Valuation: $6.9 billion
- Previous Valuation: $2.8 billion (Series D, 2024)
- Lead Investor: Disruptive
- Other Notable Investors: BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung, Cisco, Altimeter, West Coast mutual fund
Strategic Deals & Growth
- Saudi Arabia Contract: $1.5 billion agreement with HUMAIN, potentially generating $500 million in 2025 revenue
- European Expansion: Helsinki data center live; additional hubs planned
- Market Outlook: AI chip market projected to reach $400 billion annually within five years
Competitive Landscape: Competing with Nvidia, AMD, Cerebras, SambaNova, and Etched
