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AI chip startup Groq raises $750 million at a $6.9 billion valuation

Founded by Google TPU’s architect, Groq offers cloud and on-premise LPU clusters supporting open-source AI models from Meta, Google, and OpenAI.

byEmre Çıtak
September 18, 2025
in Industry

AI chip startup Groq confirmed on Wednesday that it has raised $750 million in a new funding round, bringing its post-money valuation to $6.9 billion.

The new capital more than doubles the company’s August 2024 valuation of $2.8 billion and brings its total funding to over $3 billion, according to PitchBook data.

An alternative to Nvidia’s GPUs for AI inference

Founded in 2016 by Jonathan Ross, who previously led the development of Google’s Tensor Processing Unit (TPU), Groq is building a direct challenge to Nvidia’s dominance in the AI chip market. The company develops Language Processing Units (LPUs), which are specifically designed as inference engines to run AI models with high speed and efficiency. This focus on inference—the process of deploying a trained model to make predictions—differentiates Groq’s hardware from the GPUs that are often used for both training and inference.

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Groq offers its technology to developers and enterprises through both cloud services and on-premises hardware clusters. Its platforms support open-source versions of popular AI models from companies like Meta, Google, and OpenAI, claiming to deliver comparable performance at a lower cost than Nvidia-based systems.

Rapid user growth and prominent investors

The company’s user base has grown significantly, now powering AI applications for over 2 million developers, up from 356,000 a year ago. The latest funding round was led by the investment firm Disruptive.

Other participants included BlackRock, Neuberger Berman, and Deutsche Telekom Capital Partners, as well as existing investors like Samsung and Cisco.


Featured image credit

Tags: groq

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