Groq raises $350 million at a $3.5 billion valuation after Nvidia deal

Groq has finalized a $350 million funding round valuing the AI chip startup turned data center operator at $3.5 billion, which equals almost half of the $6.9 billion the startup was worth only last September before Nvidia licensed its technology and hired away its founder. 

Groq fall began from Nvidia poach

Groq started in 2016, building its own hardware to take on Nvidia in AI processing. This changed after Nvidia struck a licensing deal for the AI company’s technology and poached CEO Jonathan Ross along with other senior staff.

A deal of this type, alongside the subsequent change in staff has become prevalent in the AI industry. Google and Meta have done similar, licensing technology and bringing in engineers from AI startups instead of acquiring the companies. Large tech firms do this to secure great expertise without buying the business entirely.

The Nvidia deal stripped out leadership at Groq, leaving a company dedicated to rebuilding its staff and purpose over the last months.

$350 million round led by Disruptive

The round was led by Disruptive, a Dallas investment firm, according to Bloomberg. A Groq representative also said that Nvidia was investing money into the deal.

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