Scoop: Groq raising $650 million for its second act - Axios
Quick Answer
Groq is raising $650 million from existing investors as it pivots from hardware to an AI inference neocloud business, following a $20 billion licensing deal with Nvidia that led to significant team departures.
Quick Take
Groq is raising $650 million from existing investors as it pivots from hardware to an AI inference neocloud business, following a $20 billion licensing deal with Nvidia that led to significant team departures. This funding allows investors to participate in Groq 2.0 after previously receiving payouts from the Nvidia agreement.
Key Points
- Groq's $650 million funding round targets existing investors for its new business model.
- The company transitions from hardware to AI inference neocloud services.
- Investors previously benefited from a $20 billion licensing deal with Nvidia.
- Disruptive and Infinitum are backing the new funding initiative.
- Groq aims to capitalize on its success in the AI sector.
Article Excerpt
From source RSS / original summary# Scoop: Groq raising $650 million for its second act. Groq is raising up to $650 million from existing investors, after the AI chipmaker previously signed a $20 billion licensing deal with Nvidia that saw much of its senior team depart, Axios has learned. **Why it matters:** Groq is one of the biggest AI wins so far for venture capitalists, and those same investors now get a second bite at the apple.
* Or at least a different sort of apple, as Groq transitions away from hardware and toward becoming an AI inference neocloud business. **Zoom in:** Groq's investors already got paid out, with a final cash distribution hitting soon, via the Nvidia deal. * Now they're being asked to participate *pro rata* in Groq 2. 0, with existing backers Disruptive and Infinitum backstopping the $650 million
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