In a bold move that underscores the growing demand for AI infrastructure, chip startup Groq is reportedly in talks to raise $600 million at a valuation of nearly $6 billion, according to sources familiar with the matter cited by Bloomberg. This would more than double the company’s previous valuation of $2.8 billion in August 2024.
If finalized, this deal could position Groq as one of the most valuable independent players in the AI hardware space—challenging industry giants like Nvidia.
A Rapid Rise: Doubling Valuation in Under a Year
Groq’s growth has been impressive. In August 2024, the company raised $640 million led by BlackRock, with support from Neuberger Berman, Type One Ventures, Cisco, KDDI, and the Samsung Catalyst Fund. That round brought Groq’s total funding to around $1 billion.
The new investment round is said to be led by Austin-based Disruptive, though final terms are still under discussion.
Strategic Partnerships with Industry Leaders
Groq is not just attracting investment—it’s also gaining traction with major industry players.
- May 2025: Groq announced a strategic partnership with Bell Canada to deliver AI infrastructure for large-scale projects.
- April 2025: The company joined forces with Meta to provide accelerated inference infrastructure for the Llama 4 AI model.
These collaborations highlight Groq’s growing influence and its efforts to carve a unique space in AI hardware by focusing on ultra-low latency and high throughput inference—key for next-gen AI deployments.
Founded by a TPU Pioneer
Groq was founded in 2016 by Jonathan Ross, a former Google engineer who was instrumental in the development of Google’s Tensor Processing Unit (TPU). Since emerging from stealth mode, Groq has gained attention for its Language Processing Unit (LPU) technology, which enables blazing-fast AI inference performance.
With roots in top-tier silicon engineering and an emphasis on purpose-built AI accelerators, Groq represents one of the most serious challengers to Nvidia’s current dominance in the AI chip space.
Looking Ahead: Groq’s Next Chapter
Although Groq and Disruptive have not officially commented on the current round, insiders suggest the company is aiming to scale manufacturing, expand cloud partnerships, and accelerate enterprise adoption of its chips in AI infrastructure.
With a valuation potentially reaching $6 billion, Groq is emerging as a major contender in the race to build the world’s most efficient AI hardware platforms.
