AI Chip Startup Groq Nears $600M Funding Round at $6B Valuation
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Nvidia AI chip challenger Groq said to be nearing new fundraising at $6B valuation | TechCrunch
AI chip startup Groq is in talks to raise a fresh $600 million at a near $6 billion valuation, sources tell Bloomberg, although the deal isn't yet final and terms could change. Groq raised $640 million at a $2.8 billion valuation in November 2024, making this double the valuation in about nine months. Groq previously raised about $1 billion. The new round is led by Austin-based firm Disruptive, Bloomberg reports. The November round was led by Blackrock, with participation from Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund. Groq was founded by Jonathan Ross, who previously worked at Google developing its Tensor Processing Unit chip. The startup emerged from stealth in 2016. This new raise comes after Groq announced in May an exclusive partnership with Bell Canada to power the telco's large AI infrastructure project. In April, Groq partnered with Meta to offer AI infrastructure to speed Llama 4 inference. Neither Disruptive nor Groq immediately returned our request for comment.
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AI chip startup Groq is in talks to raise $600M at a $6B valuation
This new funding round would see the company's valuation nearly double in just one year, following a $2.8 billion valuation in August 2023 Groq, an AI chip startup founded by former Google employee Jonathan Ross, is reportedly in discussions to secure $600 million in new funding. This round would value the company at nearly $6 billion, although the deal remains subject to change. The potential funding marks a significant increase in Groq's valuation. In August 2023, the company raised $640 million at a valuation of $2.8 billion. Prior to that, Groq had raised approximately $1 billion. The current negotiations suggest a near doubling of its valuation in roughly one year. According to Bloomberg, the latest funding round is reportedly being led by Disruptive, an Austin-based firm. A previous funding round in November was spearheaded by BlackRock. Other participants in the earlier round included Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund, demonstrating broad investor interest in Groq's technology. In May, Groq revealed an exclusive collaboration with Bell Canada to support the telecommunication company's extensive AI infrastructure initiative. Before that, in April, Groq partnered with Meta to provide AI infrastructure designed to accelerate Llama 4 inference.
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Groq, an AI chip startup challenging Nvidia, is reportedly close to securing a $600 million funding round led by Disruptive, potentially doubling its valuation to $6 billion in less than a year.
Groq's Meteoric Rise in AI Chip Industry
Groq, an AI chip startup challenging industry giant Nvidia, is reportedly on the verge of securing a substantial $600 million funding round. This latest development could potentially value the company at nearly $6 billion, marking a remarkable ascent in the competitive AI hardware sector 12.
Source: Dataconomy
Funding Details and Valuation Growth
The reported funding round, led by Austin-based firm Disruptive, represents a significant milestone for Groq. If finalized, this investment would nearly double the company's valuation in less than a year, up from $2.8 billion in November 2024 1. This rapid increase underscores the growing investor confidence in Groq's technology and market potential.
Previous Funding and Investor Interest
Groq's funding history reveals a pattern of strong investor support:
- November 2024: Raised $640 million at a $2.8 billion valuation
- Prior to that: Accumulated approximately $1 billion in total funding
The November 2024 round was led by BlackRock, with participation from notable investors including Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund 12. This diverse group of backers highlights the broad interest in Groq's AI chip technology across various sectors.
Strategic Partnerships and Market Position
Source: TechCrunch
Groq has been actively forging strategic partnerships to strengthen its market position:
- May 2025: Announced an exclusive partnership with Bell Canada to power the telco's large AI infrastructure project 1
- April 2025: Partnered with Meta to offer AI infrastructure aimed at accelerating Llama 4 inference 12
These collaborations demonstrate Groq's ability to secure high-profile clients and partners, potentially positioning the company as a significant player in the AI chip market.
Company Background and Leadership
Founded by Jonathan Ross, a former Google employee who worked on developing the tech giant's Tensor Processing Unit chip, Groq emerged from stealth mode in 2016 12. Ross's background in cutting-edge AI chip development at Google lends credibility to Groq's technological capabilities and vision.
Market Context and Competition
Groq's rapid valuation growth and successful funding rounds occur against the backdrop of intense competition in the AI chip market. As a challenger to established players like Nvidia, Groq's progress suggests a potential shift in the industry landscape, with investors betting on emerging technologies to meet the growing demand for AI-specific hardware solutions.
As the AI industry continues to evolve rapidly, Groq's future moves and ability to deliver on its technological promises will be closely watched by investors, competitors, and potential clients alike.
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