AI chip manufacturer Groq is planning to raise $650 million in new funding from existing investors to expand its inference cloud business. According to Axios, the company is focusing on providing computing power using its proprietary chips and systems. This is reported by Techcrunch.com reports .
In December last year, a unique agreement was signed between Groq and NVIDIA. Under this deal, NVIDIA licensed the startup's hardware technologies, and several high-level Groq employees joined the chip giant. The deal was valued at $20 billion, which could have been one of the largest acquisitions in NVIDIA's history, but it was implemented as a technological partnership rather than a full buyout.
Now, Groq investors are being called upon to support the company's new strategy. The new direction focuses on developing cloud services that allow developers and enterprises to deploy AI applications. Currently, in the world of artificial intelligence, there is a much higher demand for computing power for the inference stage—the process of responding to ready-made queries—than for model training.
The company is currently led by interim CEO Adam Winter and CFO Matt Eng. According to reports, the $650 million investment round is almost guaranteed. If other shareholders do not wish to increase their stakes, the Disruptive and Infinitium funds have expressed readiness to cover the full amount.
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