AI chip startup Groq reportedly raising $650M after $20B Nvidia deal
By
Dominic-Madori Davis
Crackles when you bite it. Shows the baker did the work.
Summary
AI chip startup Groq is reportedly raising $650 million in new funding from existing investors, according to Axios. The company is leaning into its inference neocloud business, which relies on its homegrown AI chip and systems. This follows a December deal with Nvidia — a reported $20 billion not-an-acquisition agreement that involved senior Groq employees moving to Nvidia and licensing Groq's hardware technology. The funding round signals Groq's pivot from hardware toward AI inference, the process of refining how AI models respond to prompts.
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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