Groq secures $640 million and raises company valuation

The artificial intelligence-focused startup Groq has raised $640 million in a recent funding round, underscoring investor commitment to innovative chips for AI systems. Groq develops semiconductors and software to optimize the performance of AI tasks, aiming to alleviate the immense bottleneck in demand for AI computing power. As part of the funding round, the Mountain View, California-based company achieved a valuation of $2.8 billion. The round was led by BlackRock funds, with the investment divisions of Cisco Systems and Samsung Electronics also participating. The Series D funding nearly triples Groq’s valuation since the last funding round in 2021, when the company was valued at $1 billion. Groq thus enters the market for new semiconductors that run AI software, competing with established giants like Intel, Advanced Micro Devices, and market leader Nvidia. “This funding accelerates our vision to provide readily available compute power for AI inferences worldwide,” stated CEO Jonathan Ross. The company also announced the addition of Stuart Pann, a former Intel executive, who will take on the role of Chief Operating Officer at Groq.