AI Chip Startup Groq Raises $640 Million, Valuation Hits $2.8 Billion

Semiconductor startup Groq has secured a significant $640 million Series D funding round, propelling its valuation to a substantial $2.8 billion. The investment round, led by prominent investors including Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners, serves as a testament to Groq’s promising position within the rapidly expanding AI chip industry.

Groq specializes in producing AI inference chips, a crucial component for optimizing the speed and execution of pre-trained AI models. These chips are becoming increasingly vital as companies accelerate their efforts to develop and deploy their own AI products. Groq has distinguished itself by successfully adapting Meta’s LLaMA large language model to run on its own chips, highlighting its advanced capabilities.


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The fresh capital infusion will fuel Groq’s ambitious expansion plans. The company intends to scale its “tokens-as-a-service” offering, introduce new AI models and features, and deploy over 108,000 Language Processing Units by the first quarter of 2025. Groq has also bolstered its leadership team with the appointment of Stuart Pann, a seasoned executive from Intel and HP Inc, as its Chief Operating Officer. Additionally, the company has secured the expertise of Meta’s Chief AI Scientist, Yann LeCun, as a technical advisor.

This influx of funding and talent positions Groq to aggressively develop its technology and compete with industry behemoths like Nvidia for market share in the burgeoning AI chip landscape.

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