Groq is looking to raise as much as $650 million from existing investors as it transitions from AI chipmaker to AI inference neocloud business, Axios reported Thursday (May 28).
This move follows a $20 billion licensing deal with Nvidia that was announced in December and saw much of Groq’s senior team leave the company, according to the report.
With its current effort, Groq is offering its existing shareholders the opportunity to invest in “Groq 2.0,” the report said.
Groq did not immediately reply to PYMNTS’ request for comment.
In the deal announced in December, Nvidia acquired talent and tech from Groq, with Groq Founder Jonathan Ross, Groq President Sunny Madra and other members of the Groq team joining Nvidia.
An Nvidia spokesperson told PYMNTS at the time: “We haven’t acquired Groq. We’ve taken a non-exclusive license to Groq’s IP and have hired engineering talent from Groq’s team to join us in our mission to provide world-leading accelerate computing technology.”
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Groq said at the time that with the agreement, the companies aimed to expand access to high-performance, low-cost inference.
“Groq will continue to operate as an independent company with [Groq Chief Financial Officer] Simon Edwards stepping into the role of Chief Executive Officer,” the company said in a Dec. 24 blog post. “GroqCloud will continue to operate without interruption.”
Three months earlier, in September, Groq said that it was valued at $6.9 billion in a funding round in which it raised $750 million in new financing.
Groq said at the time that its compute powered more than 2 million developers and Fortune 500 companies and that it was growing its global presence and playing a central role in the global deployment of AI technology that originated in America.
The valuation Groq achieved in September was more than double the one it gained about a year earlier. In August 2024, the company was valued at $2.8 billion in a funding round in which it secured $640 million.
More recently, in February, Groq said GroqCloud adoption continues to support the company’s planned infrastructure expansion. The company saw a record number of developers, more than 3.5 million, using GroqCloud.
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