AI chip maker Groq raises $650 million

01:21 / 23.06.2026·31·Technology

Groq, competing with giants like NVIDIA in the AI chip market, has officially confirmed raising $650 million in new investment to expand its operations and implement strategic changes. This step comes at a critical juncture for the company, as Groq recently partially lost its core technological intellectual property and leading specialists through a complex agreement with NVIDIA. This was reported by Techcrunch.com reports .

According to ixbt.com, this funding round is expected to significantly increase the company's market valuation, although exact figures have not yet been disclosed. For reference, Groq was valued at $6.9 billion last September. The new funds will be used not only to update the technological base but also to fill the gaps left by key personnel who moved to NVIDIA.

Controversial agreement and talent exchange with NVIDIA

In December last year, a unique licensing agreement was signed between NVIDIA and Groq. As a result of this deal, Groq founder and CEO Jonathan Ross, as well as President Sunny Madra and several key engineers, joined NVIDIA. This process, described in the tech world as a "not-acqui-hire" (attracting talent without a full acquisition), brought significant profit to Groq's investors but created a void in the company's leadership.

Currently, Groq's management has been taken over by one of the company's founders, Doug Wightman. To strengthen its personnel, the company appointed Alan Rice, who has experience at giants like xAI and Meta, as Chief Operating Officer (COO). Additionally, specialists from Microsoft and other cloud technology firms have joined the team.

New Strategy: Focus on Cloud Services

Groq is famous for its chips called Language Processing Units (LPU), which drastically increase the inference speed in AI systems. However, after NVIDIA acquired the license for this technology and introduced its Nvidia Groq 3 LPX system, Groq decided to change its business model.

The company is now focusing its primary attention on the "neocloud" (next-generation cloud services) business. Groq announced that it has currently achieved the following:

13 data centers established across North America, Europe, the Middle East, and the Asia-Pacific region;
Serving over 5 million developers and thousands of AI companies;
Processing trillions of tokens (text units) per week.

The activity of companies like Groq is of great importance for developing markets such as Uzbekistan. Increased competition in the AI chip market leads to lower cloud computing costs for end users and the democratization of technology. With its new investment, Groq is attempting to prove it can withstand NVIDIA's dominance.