Funding boom for Groq, Nvidia rival, as they secure $750 million investments

Investment secured by Groq, propelling the company's worth to an approximate $7 billion, marking a substantial increase from its previous assessment within a year's timeframe.

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2025 September 28 . 3:13 AM

2 min read

Competitor to Nvidia, Groq, Secures $750 Million in Financing

Funding boom for Groq, Nvidia rival, as they secure $750 million investments

Groq Secures $750 Million in Funding, Valued at $6.9 Billion

Groq, a startup specialising in the development of Language Processing Units (LPUs) for AI models, has announced a significant funding round of $750 million. This new investment places the company at a post-money valuation of $6.9 billion.

The funding round was led by Disruptive, with participation from several notable institutions. Alongside Disruptive, BlackRock, Neuberger Berman Group, Deutsche Telekom Capital Partners, a large investment fund on the US West Coast, Samsung, Cisco, D1 Capital, Altimeter, 1789 Capital, and Infinitum all took part. PitchBook reports that this brings Groq's total funding to over $3 billion.

Groq's LPUs are designed for the inference stage where AI models deliver results. The company's product is an inference engine designed for high efficiency and reduced cost. Groq claims that its systems maintain or even improve performance compared to alternatives while lowering costs, making it an attractive option for developers seeking alternatives to Nvidia's chips.

The growth in developer adoption highlights a demand for alternatives in the AI chip industry, where Nvidia dominates with its GPUs. Groq's founder, Jonathan Ross, who has significant expertise in the field, having helped develop the Tensor Processing Unit (TPU) at Google, leads the company.

Ross's background gives Groq credibility in a field where technical expertise is crucial. The company offers its technology through cloud services and on-premises clusters equipped with Groq's integrated hardware and software.

The news of Groq's funding comes as the company continues to grow. More than 2 million developers now use Groq's technology, a significant increase from 356,000 developers a year earlier. Both formats of Groq's technology support popular open-source AI models, including those from Meta, OpenAI, Google, Mistral, DeepSeek, and Qwen.

Groq's success is particularly noteworthy given that it emerged from stealth in the same year as Google introduced the TPU, a key part of Google Cloud's AI services today. The company's focus on efficiency and cost reduction could make it a significant player in the AI chip industry.