AI chip startup Groq is in talks to secure $600 million in funding at a valuation close to $6 billion, effectively doubling its valuation from approximately a year ago, Bloomberg sources reveal.
The reported funding round is led by Austin-based firm Disruptive, although the terms are subject to change as the deal has not been finalized. Groq’s valuation trajectory has been significant, with the company previously raising $640 million at a $2.8 billion valuation in August 2023. This followed around $1 billion in earlier funding rounds, with notable participation from investors such as BlackRock, Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund in its November funding round.
Groq was founded by Jonathan Ross, a former Google employee who contributed to the development of the Tensor Processing Unit chip. Emerging from stealth mode in 2016, the company has made substantial strides in recent times, announcing significant partnerships. Notably, in April, Groq partnered with Meta to provide AI infrastructure for Llama 4 inference. Furthermore, in May, the company formed an exclusive partnership with Bell Canada for the telco’s large AI infrastructure project, underscoring its growing influence in the AI chip sector.
