On Wednesday, Silicon Valley startup Groq announced $750 million in new financing, valuing the Nvidia Corporation (NASDAQ:NVDA) rival at $6.9 billion as it expands its global footprint in AI inference infrastructure.
Major Investors Back AI Challenger
The round was led by Dallas-based growth investment firm Disruptive, with participation from BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners and a large U.S.-based mutual fund manager.
Existing supporters Samsung Electronics Co. (OTC:SSNLF), Cisco Systems (NASDAQ:CSCO), D1, Altimeter, 1789 Capital and Infinitum (OTC:INUMF) also joined.
Building The American AI Infrastructure
Groq powers more than two million developers and Fortune 500 companies with high-speed, low-cost compute.
CEO Jonathan Ross underscored the company's role in shaping the industry. "Inference is defining this era of AI and we're building the American infrastructure that delivers it with high speed and low cost," Ross said.
The White House has also issued an executive order encouraging the export of U.S.-built AI technology. Groq's inference systems already run across North America, Europe and the Middle East, positioning it as a central player in that effort.
Saudi Arabia's HUMAIN And Global Expansion
Groq's global ambitions received a boost earlier this year when Saudi Arabia's sovereign wealth fund–backed AI firm HUMAIN tapped it to handle inference operations.
HUMAIN, chaired by Crown Prince Mohammed bin Salman, consolidates the kingdom's AI investments, including data centers, cloud services and an Arabic large language model.
In July, Groq opened its first European data center in Helsinki, Finland, to meet rising demand from enterprises adopting AI.
Valuation More Than Doubles Since 2023
The latest funding more than doubles Groq's valuation from August 2023, when it raised $640 million at $2.8 billion. Disruptive alone has invested nearly $350 million in the company.
Groq's rise comes as Nvidia continues to dominate the AI hardware market.
On Wednesday, Nvidia shares fell 2.60% to $170.29 but gained 0.62% after hours, according to Benzinga Pro. Despite the dip, Nvidia remains the world's most valuable company with a market cap of $4.14 trillion.
Benzinga’s Edge Stock Rankings show that NVDA continues to demonstrate strength across short, medium and long-term horizons, with more performance insights available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
