After Nvidia’s $20B not-aqui-hire, AI chip startup Groq reportedly raising $650M
AI chip startup Groq is reportedly seeking to raise $650 million in funding to expand its inference cloud business. This follows a significant $20 billion deal 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 the company's growth plans are backed.
- ▪Groq is looking to raise $650 million in new funding from existing investors.
- ▪The company recently struck a $20 billion deal with Nvidia, which involved licensing its hardware technology.
- ▪Groq's inference cloud business is focused on processing AI prompts, which is currently a larger need than model training.
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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-aqui-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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