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Nvidia-backed Groq seeks $8b valuation in new round

Groq, a US-based AI inference infrastructure company backed by Nvidia, is seeking a new series B round at a US$8 billion valuation, according to investor documents. That is up from US$3.15 billion in August. Both valuations exclude the money raised.

In an investor letter, executive chairman Alex Davis said Groq can increase margins without leverage. He made the point as investors scrutinise borrowing-heavy AI infrastructure models and debt pressures at CoreWeave.

Groq said in August that it had closed a US$350 million series A round.

The new fundraising is meant to support short- and medium-term contracts for inference, or the computing power used to run AI models. Davis projected that Groq’s revenue could rise 8x in 2027.

Public announcements show Groq is expanding its inference capacity. The company has secured US$1.5 billion from Saudi Arabia for regional infrastructure and launched data center operations in Helsinki, Finland.

🔗 Source: Bloomberg

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