Groq has raised $350 million as the AI infrastructure startup continues shifting from developing its own chips toward a neocloud model built around Nvidia hardware.
The round was led by investment firm Disruptive, with Nvidia also planning to participate. The deal values Groq at $3.5 billion, down from the $6.9 billion valuation it reached in September 2025.
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The change follows a major shift in the company’s strategy. In late 2025, Nvidia hired Groq founder and CEO Jonathan Ross and other senior employees as part of a $20 billion licensing deal. Groq says the new valuation reflects its business after that deal rather than a traditional down round.
From AI Chips to Cloud Infrastructure
Groq originally developed its own language processing units, or LPUs, for AI inference, the computing needed to run AI models in real time.
After losing much of its senior team, the company shifted toward cloud and data center services using Nvidia systems. In June, Groq raised another $650 million to support the transition.
Today, Groq operates 13 data centers across North America, Europe, the Middle East and Asia-Pacific, serving more than 6 million developers, enterprises and AI companies. It plans to increase capacity from 54 megawatts to more than 200 megawatts in 2027.
The latest funding will help Groq provide customers with access to larger Nvidia computing clusters for AI training and inference.
Can Neoclouds Become Profitable?
Groq is betting on rising demand for AI inference as businesses expand their use of AI. Yet the neocloud model faces questions over whether companies can generate sufficient returns from the huge cost of building and operating AI infrastructure.
CoreWeave has reported strong revenue growth and secured major contracts with Meta and Anthropic, but investors remain concerned about its capital spending, debt and the rapid depreciation of AI hardware.
Groq does not publicly disclose its financial results. Its new strategy also places it within Nvidia’s broader AI infrastructure ecosystem, alongside neocloud providers such as CoreWeave, Lambda and Nebius.
