Groq, a fast-rising AI chip startup, is making plans to raise $600 million in fresh funding.
According to Bloomberg, if successful, the deal would value the company at nearly $6 billion, from its $2.8 billion valuation in August 2024.Â
The round is expected to be led by Austin-based investment firm Disruptive. Just last year, Groq raised $640 million from notable backers.
These included BlackRock, Neuberger Berman, Cisco, Type One Ventures, KDDI, and the Samsung Catalyst Fund.
A Google Veteran
Groq was founded in 2016 by Jonathan Ross, a former Google engineer.
At Google, Ross played a key role in developing the company’s Tensor Processing Unit (TPU), a chip designed specifically for machine learning.
He left the tech giant to build a new kind of processor. His goal was to create a faster, more efficient AI chip.Â
Unlike typical GPUs, Groq’s chips focus on simplified design and higher performance. This approach allows Groq’s chips to process large AI models more quickly and consistently.
It also gives them an edge in AI inference tasks, where speed and reliability are critical.
Strategic Partnerships
Groq has also secured major partnerships to support its growth. In May 2025, the company signed an exclusive agreement with Bell Canada.
This deal will help Bell develop its national AI infrastructure. A month earlier, Groq announced a partnership with Meta.
The two companies will work together to accelerate inference for Meta’s Llama 4, a large language model. These partnerships show growing trust in Groq’s technology.
They also signal its readiness to take on larger roles in the global AI infrastructure market.
An Alternative to Nvidia
Nvidia remains the dominant company in AI chips; however, Groq presents an alternative.
Its processors are built specifically for AI workloads, not gaming or general graphics.
This makes them well-suited for large-scale AI tasks, including real-time inference.
