AI Chip Startup Groq Expands to Europe with First Data Center in Helsinki

AI chip startup Groq expands with first European data center

Jonathan Ross, chief executive officer of Groq Inc., during the GenAI Summit in San Francisco, California, US, on Thursday, May 30, 2024. Artificial intelligence semiconductor startup Groq announced Monday it has established its first data center in Europe as it steps up its international expansion. Groq, which is backed by investment arms of Samsung and Cisco, said the data center will be located in Helsinki, Finland and is in partnership with Equinix. Groq is looking to take advantage of rising demand for AI services in Europe following other U.S. firms which have also ramped up investment in the region. The Nordics in particular is a popular location for the data facilities as the region has easy access to renewable energy and cooler climates. Last month, Nvidia CEO Jensen Huang was in Europe and signed several infrastructure deals, including data centers. Groq, which is valued at $2.8 billion, designs a chip that the company calls a language processing unit (LPU). It is designed for inferencing rather training. Inferencing is when a pre-trained AI model interprets live data to come up with a result, much like the answers that are produced by popular chatbots. While Nvidia has a stranglehold on the chips required for training huge AI models with its graphics processing units (GPUs), there is a swathe of startups hoping to take a slice of the pie when it comes to inferencing. SambaNova; Ampere, a company SoftBank is in the process of purchasing; Cerebras and Fractile, are all looking to join the AI inference race. European politicians have been pushing the notion of sovereign AI -- where data centers must be located in the region. Data centers that are located closer to users also help improve the speed of services. Global data center builder Equinix connects different cloud providers together, such as Amazon Web Services and Google Cloud, making it easier for businesses to have multiple vendors. Groq's LPUs will be installed inside the Equinix data center allowing businesses to access Groq's inference capabilities via Equinix. Groq currently has data centers in the U.S. and Canada and Saudi Arabia with its technology.

AI chipmaker Groq opens first European data centre in Finland

The nine-year-old start-up has raised more than $2.5bn backed by VCs including Access Ventures, AJI Capital and APL Ventures. Artificial intelligence semiconductor start-up Groq is establishing its first European data centre in Helsinki, Finland to meet the region's growing hunger for AI. The start-up offers AI inference capabilities - the critical tech that underpins today's generative AI boom. The company, known for its low latency AI chips, was founded in 2016 by former Alphabet AI chip engineer Jonathan Ross. Start-ups such as Groq, as well as its competitors including Ampere are growing in the AI chip sector dominated by the likes of Nvidia. The company's entrance in Europe is in collaboration with Equinix, a digital infrastructure company with a strong presence in Ireland. The Finnish data centre follows another data centre the two companies built together in Dallas, US. 13.5pc of EU-based enterprises with 10 or more employees used AI in 2024 - up from 8pc the year before. While, in the same year, more than 41pc of large enterprises used AI. Many companies, especially larger firms, are making a conscious shift by utilising AI, with government policies also recognising the importance of using the tech to improve returns and grow. The new European footprint brings AI inference capacity closer to users across Europe, Groq said, which is expected to offer lower latency, faster response times at scale and stronger data governance to its clients. The company's global network, spread across the US, Canada and the Kingdom of Saudi Arabia, serves more than 20m tokens per second, the company added. The nine-year-old start-up has raised more than $2.5bn backed by VCs including Access Ventures, AJI Capital and APL Ventures. According to reports, it is valued at $2.8bn. "As demand for AI inference continues at an ever-increasing pace, we know that those building fast need more - more capacity, more efficiency and with a cost that scales," said Ross, who is also the CEO of the company. Regina Donato Dahlström, the managing director for the Nordics at Equinix said that the Nordics is a "great place" to host AI infrastructure. "With its sustainable energy policies, free cooling and reliable power grid, Finland is a standout choice for hosting this new capacity. According to the International Energy Agency, data centres, both AI-driven and non AI-driven, could use 80pc more energy in 2026 than in 2022. In addition, electricity consumption in AI-driven data centres is expected to rise by 90 TWh - or around 4pc of the EU's current electricity consumption. The EU states that AI-focused data centres tend to cluster in geographical locations and contribute to pressure on local grids and could involve trade-offs with climate goals, land use and energy affordability. Meanwhile, pressure on Ireland's grid is already on the rise, with data centres using up 22pc of the country's electricity in 2024. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

AI chip firm Groq expands to Europe

Groq, an artificial intelligence semiconductor startup, announced Monday the establishment of its first European data center in Helsinki, Finland, in partnership with Equinix, as part of its international expansion efforts. The move allows Groq to capitalize on growing demand for AI services in Europe, following similar investments by other U.S. firms. The Nordic region is desirable for data facilities because of its access to renewable energy and cooler climates. Last month, Nvidia CEO Jensen Huang signed several infrastructure deals in Europe, including data center agreements. Groq, valued at $2.8 billion and backed by investment arms of Samsung and Cisco, designs language processing units (LPUs) intended for inferencing rather than training. Inferencing involves a pre-trained AI model interpreting live data to produce results, such as those from chatbots. While Nvidia dominates the market for chips required to train AI models using graphics processing units (GPUs), Groq is among several startups, including SambaNova, Ampere (which SoftBank is acquiring), Cerebras, and Fractile, aiming to gain market share in AI inference. According to CEO Jonathan Ross, Groq is seeking to differentiate itself from competitors, including Nvidia, in several areas. Ross stated in a Monday interview with CNBC that Nvidia chips use expensive components, such as high-bandwidth memory, with limited suppliers. In contrast, Groq's LPUs do not use these chips, and its supply chain is primarily based in North America. Groq sparks LPU vs GPU face-off "We're not as supply limited, and that's important for inference, which is very high volume, low margin," Ross told CNBC's "Squawk Box Europe." Ross added, "And the reason that we're so good for Nvidia's shareholders is, we're happy to take that high volume but lower margin business and let others focus on the high-margin training." Ross also emphasized Groq's rapid deployment capabilities, noting that the company decided to build the Helsinki data center four weeks prior to unloading server racks at the location. "We expect to be serving traffic starting by the end of this week. That's built fast and so it's a very different proposition from what you see in the rest of the market," Ross said. European politicians have advocated for sovereign AI, which requires data centers to be located within the region. Data centers closer to users can also improve service speeds. Equinix, a global data center builder, connects cloud providers like Amazon Web Services and Google Cloud, allowing businesses to use multiple vendors. Groq's LPUs will be installed in the Equinix data center, providing businesses access to Groq's inference capabilities through Equinix. Groq currently operates data centers using its technology in the U.S., Canada, and Saudi Arabia.

Nvidia's AI Chip Rival Groq Launches First European Data Center - NVIDIA (NASDAQ:NVDA)

Groq, a U.S.-based startup specializing in AI chips, has launched its first European data center in Helsinki, Finland as part of the company's international expansion and goal to meet the rising demand for AI services across Europe. The Details: Groq's new Helsinki location was developed in partnership with Equinix, a major global data center provider. Read Next: Meta's Growth Sizzles, But Wait For A Pullback Before Buying In Finland was chosen due to factors that make it ideal for large-scale data centers, including reliable energy infrastructure, abundance of renewable energy and a cool climate. according to CNBC. The decision to build the Helsinki data center was made just four weeks before its launch, highlighting Groq's ability to move quickly. The company expects to start serving customers almost immediately. Why It Matters: Groq, which is valued at $2.8 billion and backed by investors such as Samsung and Cisco, is positioning itself as a challenger to established players like NVIDIA Corp. NVDA in the AI inference market. Groq specializes in inferencing, which is the process of running live data through pre-trained AI models. Inferencing is less demanding than training new AI models -- a process that usually relies on Nvidia's GPUs due to its high computational requirements. Unlike other competitors, Groq's chips do not rely on expensive, hard-to-source components like high-bandwidth memory. Most of its supply chain is based in North America, making Groq less vulnerable to global supply disruptions and tariffs. Groq already operates data centers in the United States, Canada and Saudi Arabia. The new Helsinki center strengthens its presence in Europe and supports its goal of delivering fast, affordable AI inference capabilities worldwide. Read Next: OpenAI Says Tokens Are Not Equity, No Partnership With Robinhood: Musk Says AI Company's Equity 'Is Fake' Image: Shutterstock NVDANVIDIA Corp $157.93-0.88% Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock Rankings Edge Rankings Momentum 78.00 Growth 98.58 Quality Not Available Value 6.92 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs