AI chip company Groq has confirmed the completion of a new $650 million funding round. This financing comes just about six months after NVIDIA signed a technology licensing agreement with Groq in December last year. Following that deal, Groq’s founder Jonathan Ross, president Sunny Madra, and several employees joined NVIDIA, prompting the company to subsequently replenish its management team and adjust its business direction.
The previous valuation was $6.9 billion.
Groq has not disclosed its latest valuation following this funding round. The company’s last publicly reported valuation was in September 2025, when it raised $750 million at a $6.9 billion valuation.
Jonathan Ross previously worked at Google on TPU development and is well-known in the AI chip industry. Groq was co-founded by him and another Google engineer, Doug Wightman. After the NVIDIA transaction, Wightman remained with the company and assumed the role of CEO.
LPU technology has been adopted by NVIDIA in its new system.
Groq initially promoted its LPU inference chip, selling it as a cloud service or on-premises hardware cluster. According to reports, NVIDIA has now acquired the intellectual property rights to this technology and unveiled the Nvidia Groq 3 LPX inference hardware system at its GTC conference in March.
This means Groq's existing chip roadmap faces more direct competition, prompting the company to accelerate its business transition.
Business focus shifts to neocloud
Groq stated that the current focus has shifted to the neocloud business, which was previously led by Sunny Madra, who joined the company after Groq acquired his AI analytics firm, Definitive Intelligence, in 2024.
According to Groq, the business has now expanded to 13 data centers across North America, Europe, the Middle East, and Asia-Pacific, serving over 5 million developers and thousands of AI companies, processing trillions of tokens per week.
On the personnel front, Groq is also adding new members to its management team, including Alan Rice, formerly of xAI and Meta, as Chief Operating Officer, and Sinclair Schuller and Rakesh Malhotra as Chief Technology Officer and Chief Product Officer, respectively.
This indicates that, following changes in its core team, Groq is attempting to sustain growth through fundraising, adding executive talent, and shifting toward cloud infrastructure services.