Groq targets $6 billion valuation post Saudi deal

Business Jul 10, 2025

Groq, a Silicon Valley startup making AI chips, is aiming to raise up to $500 million to push its valuation to $6 billion.
This funding drive is happening as Groq gears up for a big contract: delivering its AI chips to Saudi Arabia.

Saudi Arabia's $1.5B bet on Groq

Back in February, Saudi Arabia pledged $1.5 billion to help Groq meet its chip delivery promises—a partnership expected to bring in $500 million in revenue for Groq this year alone.
Notably, Groq already raised $640 million last year and is known for building fast chips that run pre-trained AI models efficiently.