Aug 1, 12:08 PM

Groq Seeks $600 Million, Doubling Valuation to $6 Billion

AI-chip specialist Groq Inc. is in advanced talks to raise roughly $600 million in fresh capital at a valuation near $6 billion, according to people familiar with the negotiations. Austin-based investment firm Disruptive is expected to lead the round, which would more than double Groq’s valuation since its last financing in August 2024. Founded in 2016 by former Google engineer Jonathan Ross, who spearheaded development of the search giant’s Tensor Processing Unit, Groq designs processors optimized for running AI inference workloads. The company has attracted customers seeking alternatives to Nvidia’s dominant GPUs, recently announcing deals with Bell Canada and Meta Platforms to bolster their AI infrastructure. Proceeds from the prospective round would fund expanded manufacturing and research as competition intensifies in the AI-hardware market. Groq’s ability to deliver high-speed, low-latency chips at competitive prices has helped it win business even as larger rivals pour billions into next-generation silicon.