Groq, an AI chip startup, is reportedly in discussions to secure $600 million in funding, potentially valuing the company at approximately $6 billion. While the deal is not yet finalised, the funding round is led by venture capital firm Disruptive, who have pledged over $300 million.
Groq specialises in developing chips for AI applications, positioning itself within the expanding market for specialised AI hardware. Their Lightning Processing Units (LPUs) are designed to offer faster performance than traditional GPUs, demonstrated by outperforming Microsoft's AI model by producing 13 times more tokens per second. Groq's technology aims to accelerate AI models, addressing current limitations in speed.
Groq's earlier Series D round in August 2024 raised $640 million, valuing the company at $2.8 billion. The company is on track to deploy over 108,000 LPUs by the end of Q1 2025. Groq also recently launched its first European data centre in Helsinki.
