Groq's valuation is cut in half to $3.5 billion as Nvidia joins as a new investor

According to Dynamic Beating monitoring, Groq has raised another $350 million, with a valuation of $3.5 billion. The round was led by Disruptive, with participation from Nvidia. Just in June, Groq raised $650 million, totaling $1 billion in funding over two months.

What is particularly dramatic is the valuation. When Groq raised funds in September last year, the company was valued at $6.9 billion. Subsequently, Nvidia obtained Groq's Inference Technology license, and key members such as founder Jonathan Ross and president Sunny Madra joined Nvidia. Now, Groq's funding valuation has dropped to nearly half of that.

Groq's direction has also completely changed. It is now focusing on AI inference in the cloud and has become a Nvidia-certified cloud partner. The company plans to expand its data center capacity from 54MW to over 200MW by 2027, with the new funds also supporting Nvidia's accelerated computing clusters. The former chip challenger has now become Nvidia's customer, partner, and invested company all at once.