AI chip startup Groq reportedly raising $650M after $20B Nvidia deal
By
Dominic-Madori Davis
Plain bagel done well. Pleasantly substantive.
Summary
AI chip startup Groq is reportedly raising $650 million in new funding from existing investors, focusing on its inference neocloud business that uses its proprietary AI chips. This follows a December deal with Nvidia, described as a "not-an-acquisition agreement" worth $20 billion, which involved senior Groq employees moving to Nvidia and licensing Groq's hardware technology. The funding round signals Groq's pivot from pure hardware to a greater emphasis on AI inference services.
Key quotes
· 3 pulledGroq is looking to raise $650 million in new funding from existing investors, sources tell Axios, as it leans into its inference neocloud business that relies on its homegrown AI chip and systems.
In December, Groq struck one of those not-an-acquisition agreements with Nvidia for a reported $20 billion, which involved the departure of some top-level senior Groq employees to the chip giant and the licensing of Groq's hardware technology to Nvidia.
That deal was good news for the startup's investors.
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