Groq, a startup specializing in chips designed to accelerate generative AI models, announced on Monday that it has secured $640 million in a new funding round led by Blackrock. Other participating investors include Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund.
This funding round brings Groq’s total raised funds to over $1 billion and values the company at $2.8 billion, marking a significant increase from its previous valuation of $1 billion in April 2021. The company had originally aimed to raise $300 million at a slightly lower $2.5 billion valuation. Notably, Meta’s chief AI scientist Yann LeCun and former Intel executive Stuart Pann are joining Groq as technical advisor and chief operating officer, respectively.
Groq is known for its LPU (language processing unit) inference engine, which it claims can run existing generative AI models at 10x the speed and one-tenth the energy compared to conventional processors. Led by CEO Jonathan Ross, Groq offers a developer platform called GroqCloud with various AI models and features, catering to over 356,000 developers, including many from Fortune 100 companies.
Despite fierce competition in the AI chip market, Groq faces rivals like Nvidia, Amazon, Google, and Microsoft. The company is focusing on enterprise and government outreach, recently acquiring Definitive Intelligence to enhance its offerings. Groq has also partnered with Carahsoft and Aramco Digital to expand its presence in the public sector, while working on manufacturing more advanced chips with Global Foundries.
With plans to deploy over 108,000 LPUs by Q1 2025, Groq is making strides towards advancing its technology and securing its position in the evolving AI chip market.