AI Chipmaker Groq to Raise $600M, Valuation Hits $6B

According to Bloomberg, U.S.-based AI chip startup Groq is on track to raise $600 million in fresh funding, potentially boosting its valuation to around $6 billion—a twofold increase in just nine months.

Insiders revealed that this latest round is being led by Disruptive, a venture capital firm that has already committed over $300 million to the deal. While the terms are still being finalized, the investment round is said to exceed Groq's initial expectations, pushing the company's total raised capital past $2 billion.

Despite slightly lowering its 2025 revenue forecast by over $1 billion, Groq continues to gain investor confidence. In August 2024, it raised $640 million in a Series D round backed by Cisco Investments, Samsung Catalyst Fund, and BlackRock's private equity arm—then valuing the company at $2.8 billion.

Groq develops custom semiconductors and AI-optimized software, positioning itself as a direct competitor to Nvidia in the fast-growing artificial intelligence sector. Its technology enables users to run AI models directly from preferred data centers, supporting faster and more flexible AI inference.

The company is also building out a global data network to speed up query responses for enterprise users. Most recently, Groq announced its first European data center project in Finland, signaling its international infrastructure ambitions.