After Nvidia’s $20B not-acqui-hire, AI chip startup Groq reportedly raising $650M
AI chip startup Groq is reportedly raising $650 million in new funding to expand its inference neocloud business. This follows a significant $20 billion agreement with Nvidia that involved the departure of key employees and licensing of Groq's technology. The funding round is expected to be supported by existing investors, ensuring Groq's growth in the AI sector.
- ▪Groq is seeking to raise $650 million from existing investors.
- ▪The company recently entered a $20 billion not-acquisition agreement with Nvidia.
- ▪Groq's inference cloud business is designed to support developers and enterprises with AI applications.
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In Brief Posted: 10:27 AM PDT · May 29, 2026 Image Credits:Nuthawut Somsuk / Getty Images Dominic-Madori Davis After Nvidia’s $20B not-acqui-hire, AI chip startup Groq reportedly raising $650M Groq is looking to raise $650 million in new funding from existing investors, sources tell Axios, as it leans into its inference neocloud business that relies on its homegrown AI chip and systems. In December, Groq struck one of those not-an-acquisition agreements with Nvidia for a reported $20 billion, which involved the departure of some top-level senior Groq employees to the chip giant and the licensing of Groq’s hardware technology to Nvidia.
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