AI startup Groq attracts $650M after Nvidia's $20B deal

Chip manufacturer Groq plans to raise $650 million in internal funding. The company is shifting strategy: from hardware production to a focus on AI inference.

American startup Groq, specializing in artificial intelligence chip development, intends to raise $650 million in a new funding round, according to Axios. The news comes following Nvidia's major $20 billion deal.

The company is changing course: rather than focusing exclusively on hardware manufacturing, Groq is reorienting toward AI inference — the process of optimizing language model responses to user queries. This direction is becoming one of the key areas in the artificial intelligence industry.

The attraction of such a significant amount of capital indicates growing investor interest in infrastructure for processing AI requests. The AI inference market is rapidly expanding as more and more companies implement large language models in their products and services.