Groq, Nvidia’s AI Chip Rival, Said to Be Seeking New Funding Round at $6 Billion Valuation

AI chip startup Groq is in talks to secure an additional $600 million, with an estimated valuation approaching $6 billion, according to sources cited by Bloomberg. However, the agreement is still pending and specifics may alter.

In August 2024, Groq successfully raised $640 million, bringing its valuation to $2.8 billion, effectively doubling its value in less than a year. To date, the company has raised approximately $1 billion in total.

The upcoming fundraising round is led by the Austin-based firm Disruptive, as reported by Bloomberg. The last funding round in November was orchestrated by BlackRock, with participation from Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund.

Founded by Jonathan Ross, the mind behind Google’s Tensor Processing Unit chip, Groq officially emerged from stealth mode in 2016.

This recent funding initiative follows Groq’s announcement in May about an exclusive partnership with Bell Canada to enhance the telco’s extensive AI infrastructure project. Furthermore, in April, Groq teamed up with Meta to bolster AI infrastructure that accelerates Llama 4 inference. As of now, neither Disruptive nor Groq has responded to our request for comments.

Correction: This article initially misstated the date of the previous funding round.