Groq Seeks $650M After Nvidia's $20B Deal

AI chip startup Groq is raising $650 million from existing investors as it expands its inference cloud business, following a landmark $20 billion licensing deal with Nvidia in December. That agreement saw senior Groq employees depart to Nvidia and the licensing of Groq's hardware technology, while investors received cash payouts. The new funding will support Groq's inference neocloud platform, which hosts AI applications for developers and enterprises. The raise is effectively guaranteed, with backers Disruptive and Infinitium agreeing to cover any shares existing investors decline. Groq is currently led by interim CEO Adam Winter and CFO Matt Eng.