Groq raised $350 million in new funding led by investment firm Disruptive, with Nvidia planning to participate in the round, TechCrunch reported. The round values Groq at $3.5 billion, Bloomberg reported.
The valuation is roughly half the $6.9 billion Groq commanded in September 2025, before Nvidia hired away founder Jonathan Ross and other top staff as part of a $20 billion licensing deal in December, according to TechCrunch. Groq executives described the new figure as a reset for the post licensing deal version of the company rather than a down round, Bloomberg reported.
The company is shifting from building its own AI chips to operating as a neocloud, renting out Nvidia powered data center capacity for AI training and inference, TechCrunch reported. Groq plans to expand from 54 megawatts of capacity to more than 200 megawatts in 2027 and currently runs 13 data centers, according to TechCrunch.
"We are building Groq into the world's leading AI inference cloud," said Alex Davis, Groq's chairman and chief executive of Disruptive, according to TechCrunch. Groq says it serves more than 6 million developers and enterprises, Bloomberg reported.
For developers who built on Groq's custom chips for fast inference, the pivot means the company's edge going forward is running Nvidia hardware efficiently, not proprietary silicon. That puts Groq in the same lane as CoreWeave, Lambda and Nebius, competing on the same underlying gear.