Groq Raises $350M Series A at $3.5B Valuation to Advance AI Cloud Services

On August 18, Groq announced it had closed a $350 million Series A funding round at a valuation of $3.5 billion. The round was led by Disruptive, with participation from NVIDIA. Combined with the $650 million raised in June, Groq has now secured a total of $1 billion in recent funding. Previously, Groq signed a non-exclusive technology licensing agreement worth $20 billion with NVIDIA, granting NVIDIA access to Groq’s LPU inference acceleration ASIC technology. Groq has since pivoted to become an AI cloud service provider under the name “Neocloud.” On August 12, Groq announced it had become an NVIDIA Cloud Partner, offering training and inference services based on medium- to large-scale NVIDIA accelerated computing clusters. Currently, Groq’s computing capacity stands at 54 MW, and it is expected to exceed 200 MW by 2027.