Groq's valuation skyrockets to $6.9 billion as AI chip demand
Groq, a chip startup founded by a former Alphabet engineer, just saw its valuation more than double—jumping from $2.8 billion in August 2024 to $6.9 billion after raising $750 million this September.
The company makes AI inference chips, which are in high demand as tech companies pour money into smarter AI infrastructure.
Major investors and revenue projections
The latest funding was led by Disruptive, chipping in $350 million, with support from major players like Blackrock, Samsung, Cisco, Neuberger Berman, Deutsche Telekom Capital Partners, a large US-based West Coast mutual fund manager, D1, Altimeter, 1789 Capital, Infinitum, and others.
Earlier this year Groq also secured a massive $1.5 billion commitment from Saudi Arabia and is aiming for $500 million in revenue for this year.
Their chips compete with the likes of NVIDIA and AMD as the industry shifts more toward AI-powered tech worldwide.