Groq Raises $750 Million at $6.9 Billion Valuation to Accelerate AI Chip Innovation

Groq, the AI chip startup specializing in high-performance Language Processing Unit (LPU) chips and data center compute solutions powered by these chips, has raised $750 million in a funding round led by the venture capital firm Disruptive. This latest investment values Groq at a post-money valuation of $6.9 billion, marking a significant milestone in its growth.

Founded in 2016 by Jonathan Ross, a former Google engineer who helped develop the Tensor Processing Unit (TPU), Groq’s chips focus on optimizing AI inference tasks for large language models, image classification, and other AI applications. Their chips are designed for speed and efficiency, positioning Groq as a strong competitor to Nvidia in the AI chip market.

Beyond chip development, Groq has expanded its global presence through data center operations in the U.S., Canada, Saudi Arabia (backed by a $1.5 billion commitment), and Europe with partnerships such as one with Equinix in Helsinki.

The $750 million round saw participation from investors like BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung Electronics, Cisco Systems, D1 Capital, and Altimeter, signaling confidence in Groq’s technology and market potential.

While Groq recently adjusted its 2025 revenue projections due to data center capacity limits, the company remains on track to deploy over 100,000 chips next year and continue scaling its AI inference platform, GroqCloud.

This funding and Groq’s technological advances emphasize the intense competition in the AI hardware market, where fast, efficient processors are essential to meet the growing compute demands of AI applications worldwide. Groq’s trajectory positions it as a rising force poised to challenge established players and drive the future of AI compute.Groq, the AI chip startup specializing in high-performance Language Processing Unit (LPU) chips and data center compute solutions powered by these chips, has raised $750 million in a funding round led by the venture capital firm Disruptive. This latest investment values Groq at a post-money valuation of $6.9 billion, marking a significant milestone in its growth.bloomberg+3

Founded in 2016 by Jonathan Ross, a former Google engineer who helped develop the Tensor Processing Unit (TPU), Groq’s chips focus on optimizing AI inference tasks for large language models, image classification, and other AI applications. Their chips are designed for speed and efficiency, positioning Groq as a strong competitor to Nvidia in the AI chip market.

Beyond chip development, Groq has expanded its global presence through data center operations in the U.S., Canada, Saudi Arabia (backed by a $1.5 billion commitment), and Europe with partnerships such as one with Equinix in Helsinki.

The $750 million round saw participation from investors like BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung Electronics, Cisco Systems, D1 Capital, and Altimeter, signaling confidence in Groq’s technology and market potential.

While Groq recently adjusted its 2025 revenue projections due to data center capacity limits, the company remains on track to deploy over 100,000 chips next year and continue scaling its AI inference platform, GroqCloud.

This funding and Groq’s technological advances emphasize the intense competition in the AI hardware market, where fast, efficient processors are essential to meet the growing compute demands of AI applications worldwide. Groq’s trajectory positions it as a rising force poised to challenge established players and drive the future of AI compute.