Groq Targets $600 Million Fundraising at $6 Billion Valuation
AI chip startup Groq is in discussions to secure up to $600 million in new funding, valuing the company at approximately $6 billion, according to sources cited by Bloomberg. Although the terms of the deal are not yet finalized and may change, this development reflects a significant increase from Groq’s previous valuation of $2.8 billion when it raised $640 million in November 2024.
Founded in 2016, Groq was established by Jonathan Ross, who previously contributed to the development of Google’s Tensor Processing Unit chip. Since its inception, the company has raised about $1 billion in total funding. The upcoming round is being led by the Austin-based firm Disruptive, which is known for its investments in innovative technology companies.
The November funding round was led by Blackrock, with significant participation from investment firms such as Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund. Groq’s rapid growth and its ability to attract such prominent investors underscore its potential in the competitive AI chip market.
Strategic Partnerships Fuel Growth
This new funding initiative follows an exclusive partnership announced in May 2024 with Bell Canada, aimed at enhancing the telecommunications company’s AI infrastructure project. Additionally, in April 2024, Groq entered into a collaboration with Meta to provide AI infrastructure that will accelerate Llama 4 inference. These partnerships highlight Groq’s commitment to expanding its influence and capabilities in AI technology.
Despite the exciting prospects, neither Disruptive nor Groq responded to requests for comment regarding the funding discussions. As the company works to finalize this latest round, industry observers will be keenly watching its next moves in a rapidly evolving sector where competition is fierce and innovation is key.
With this significant growth trajectory, Groq is positioning itself as a formidable challenger to established players in the AI chip market, aiming to leverage its technology and partnerships to enhance its offerings and expand its market share.
