Groq aims to raise $600 million in new investment round

Groq aims to raise $600 million in new investment round

US AI chip developer Groq is in talks to raise approximately $600 million in a new round of financing. This would bring the company’s valuation to around $6 billion.

This was reported by Bloomberg. The round is being led by investment company Disruptive, which is reportedly investing over $300 million. Sources close to the process indicate that talks are still ongoing and that the terms and conditions are subject to change. Neither Groq nor Disruptive are commenting on the reports.

The investment comes at a time when Groq has significantly revised its expectations for 2025. Publications by Investing.com, among others, show that the company has lowered its revenue forecast from more than $2 billion to just over $500 million. The previous estimate was shared around the time of a large-scale collaboration with Saudi Arabia, worth $1.5 billion. When the company was confronted with the revised figures, the chief operating officer indicated that there may have been a misunderstanding.

Delayed hardware rollout

According to insiders, a large part of the expected revenue is now being pushed back to 2026. This could indicate that Groq is experiencing problems scaling up data center capacity, which is delaying the rollout of their hardware to large customers. Nevertheless, investor interest appears to remain high. The amount now being targeted is even higher than initially planned. If the round is successful, Groq’s total capital raised will exceed $2 billion.

The company is working on AI-specific chips and software with the aim of remaining competitive against established names such as Nvidia. Groq develops technology that enables customers to run AI models flexibly and is building global infrastructure to deliver AI applications with minimal latency.

The company recently opened its first European data center in Helsinki, enabling it to tap into the fast-growing European market for AI inferencing and cloud integration.