Groq Secures $750M at $6.9B Valuation Amid AI Chip Demand

Groq Inc. has announced a successful new financing round, raising $750 million and achieving a post-money valuation of $6.9 billion. This substantial funding reflects significant investor confidence in companies addressing the critical shortage of chips and computing power for AI workloads. The Silicon Valley-based startup, founded by a former Alphabet engineer, is strategically positioning itself to capitalize on the extensive investments being made in AI hardware. The financing round was led by Disruptive and featured significant contributions from prominent financial firms, including Blackrock Inc., Neuberger Berman Group LLC, and Deutsche Telekom Capital Partners. A large US-based West Coast mutual fund manager also participated, alongside 1789 Capital and Infinitum. Existing investors, such as Samsung Electronics Co., Cisco Systems Inc., D1, and Altimeter, also demonstrated continued support. Groq Founder and CEO Jonathan Ross commented, "Inference is defining this era of AI, and we're building the American infrastructure that delivers it with high speed and low cost." This new funding signifies considerable growth for the company, more than doubling its valuation from August of the previous year, when it raised $640 million at a $2.8 billion valuation. The sustained investor commitment highlights a strong market belief in Groq's technology and its anticipated role in shaping the future of AI infrastructure.