AI Startup Groq Gets $2.8 Billion Valuation in New Funding Round
Artificial intelligence startup Groq Inc. has raised $640 million in new funding, underscoring investor enthusiasm for innovation in chips for AI systems.
Cisco and Samsung invested in the $640 million deal
Tweet on new funding of chip startup Groq.inc
AI startup @GroqInc has raised $640 million in new funding, Bloomberg reports#ai #startup #fundinghttps://t.co/YlnpRTlGn5
— The_Journalbiz (@the_journalbiz) August 5, 2024
Bloomberg on AI startup Groq inc.
The startup designs semiconductors and software to optimize the performance of AI tasks, aiming to help alleviate the huge bottleneck of demand for AI computing power. It was valued at $2.8 billion in the deal, which was led by BlackRock Inc. funds and included backing from the investment arms of Cisco Systems Inc. and Samsung Electronics Co.
- The Series D round almost triples the company’s valuation from $1 billion in a funding round in 2021.
Groq is entering the new AI software semiconductors market, competing against incumbents such as Intel Corp., Advanced Micro Devices Inc., and leader Nvidia Corp.
Groq plans to use the funding to build about 108,000 language processing units, hire significantly, and look at some acquisitions, Chief Executive Officer Jonathan Ross said in an interview on Bloomberg.
