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AI company Groq valued at $3.5 billion after raising $350 million

Groq, an AI chip company, has raised $350 million at a $3.5 billion valuation, a sharp drop from its $6.9 billion valuation less than a year ago. The round was led by Disruptive, with NVIDIA participating, following NVIDIA's licensing agreement that hired Groq's founder and CEO Jonathan Ross. Groq plans to expand its data center footprint beyond 200 megawatts by next year.

read1 min views6 publishedAug 17, 2026
AI company Groq valued at $3.5 billion after raising $350 million
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Via valour.capital

The AI chip company lost its founder and president to Nvidia but landed a massive growth round to scale its inference cloud operations globally.

Groq has secured $350 million in new funding at a $3.5 billion valuation, marking a sharp reset from the AI chip startup’s $6.9 billion valuation less than a year ago.

The round was led by Disruptive, the Dallas investment firm founded by Groq Executive Chairman Alex Davis, with NVIDIA also participating. The financing follows NVIDIA’s licensing agreement with Groq in late 2025, under which NVIDIA hired founder and CEO Jonathan Ross and other key employees.

Once focused on developing AI chips to challenge NVIDIA, Groq has since repositioned itself as a data center operator focused on AI inference. The company previously raised $650 million in June to fund the transition but did not disclose its valuation at the time.

Groq plans to use part of the new capital to expand its data center footprint beyond 200 megawatts by next year as demand for AI computing continues to grow.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our

Editorial Policy.

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