The startup Groq, challenging Nvidia’s dominance, continues to attract investor attention. The company has raised $6.9 billion in funding, surpassing expectations.
Groq’s valuation has more than doubled in a year. In August 2024, the startup was valued at $2.8 billion, and so far, it has raised over $3 billion in total funding. This rapid growth is driven by their next-generation chips, called “LPU,” which serve as an alternative to Nvidia’s graphics processors (GPUs). These chips are specifically designed to run AI models, offering faster performance than conventional processors while being more cost-effective.
The startup offers this technology in two ways: as a cloud service or as on-premises servers that can be installed at the client’s office. In both cases, these systems support popular AI models used by giants like Meta, Google, and OpenAI.
Groq’s founder, Jonathan Ross, also inspires confidence in the startup. He was previously part of a Google team that developed custom processors for machine learning. Currently, over 2 million developers use Groq’s services, a significant increase from 356,000 a year ago.
The latest funding round was led by the investment firm Disruptive, with participation from major companies including Samsung, Cisco, and BlackRock. This support further strengthens Groq’s position in the competition against Nvidia.
