Groq Secures $640M Funding, Valued at $2.8B for AI Chips

Mountain View, CA—Groq, a provider of AI inference technology, has raised $640 million in a Series D funding round. 

The investment values Groq at $2.8 billion.

The funding round was led by funds and accounts managed by BlackRock Private Equity Partners. 

Participation came from both existing and new investors, including Neuberger Berman and Type One Ventures, and strategic investors such as Cisco Investments, Global Brain's KDDI Open Innovation Fund III, and Samsung Catalyst Fund.

Groq plans to use the funds to scale the capacity of its tokens-as-a-service (TaaS) offering and add new models and features to its GroqCloud platform. 

The company said it will deploy over 108,000 LPUs (Logical Processing Units) manufactured by GlobalFoundries by the end of Q1 2025.

The startup, which provides cloud and on-premises AI inference solutions, has grown to over 360,000 developers building on its GroqCloud platform.

Groq also announced the appointment of Stuart Pann, formerly a senior executive from HP and Intel, as its new Chief Operating Officer.