AI chipmaker Groq raises $650 million from existing investors as it pivots to an AI inference neocloud business model.
AI chipmaker Groq is raising up to $650 million from current backers to transition from hardware to an AI inference neocloud business. The funding follows a $20 billion licensing deal with Nvidia, which led to key departures from Groq’s leadership team.
Existing investors, including Disruptive and Infinitum, are backstopping the round if it is not fully subscribed. Groq recently distributed cash to shareholders and is now offering them pro rata participation in the new funding phase. The company is led by returning executives Adam Winter as CEO and Matt Eng as CFO.
The move reflects broader trends in AI private markets, where rapid shifts in business models are becoming more common.