Groq Raises $750 Million in Funding at a Post-Money Valuation of $6.9 Billion

Groq, an AI Chip Developer led by Jonathan Ross, Sunny Madra, Ian Andrews, Chelsey Susin Kantor, Igor Arsovski, Allison Hopkins, and others, has secured $750 million led by investment firm Disruptive, with additional funding from BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, and others. Existing investors, including Samsung, Cisco, D1, and Altimeter, also joined the round.

Groq is gaining attention for challenging Nvidia’s dominance in AI chips. Unlike traditional GPUs that power most AI systems, Groq’s hardware is built around LPUs, Language Processing Units, designed as inference engines optimized to run AI models with greater speed and efficiency.

Groq offers its technology to developers and enterprises through both cloud services and on-premises clusters, server racks equipped with integrated hardware/software nodes. These systems run open versions of leading models from Meta, DeepSeek, Qwen, Mistral, Google, and OpenAI, delivering comparable or better AI performance at significantly lower cost than alternatives.