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- Groq
Groq Acquisition, Valuation, Funding & Investors
Groq was acquired by NVIDIA for $20B in December 2025, a 40.0x multiple on $500M of revenue.
Groq revenue at acquisition
$500M
Last twelve months · Dec 2025
Groq revenue multiple at acquisition
40.0x
EV/Revenue · Dec 2025
Cumulative funding Groq raised
$2.8B
across 7 funding rounds
About Groq
Groq is a Mountain View-headquartered AI inference company founded in 2016. Its Language Processing Unit chips deliver over 500 tokens per second for models like Llama 2 on the GroqCloud platform. Used by developers at Stability AI and Perplexity, the hardware powers real-time applications with low latency.
Founded
2016
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Product sales, Subscription
Revenue
$90M (Sep 2025)
Valuation
$3.5B (Aug 2026)
Groq Acquisition
Groq was acquired by NVIDIA for $20B on 24 December 2025.
The acquisition price implies a 40.0x revenue multiple on $500M of revenue.
Before the acquisition Groq had raised $2.8B across 7 funding rounds.
In late December 2025, Nvidia executed a landmark $20 billion non-exclusive licensing and asset acquisition deal with AI chip startup Groq. Rather than an outright corporate buyout, Nvidia licensed Groq's high-performance Language Processing Unit (LPU) architecture and secured its core engineering talent, allowing the Groq corporate entity to operate independently. Nvidia agreed to an estimated $20 billion cash arrangement to license Groq's intellectual property (IP) and absorb 80-90% of its workforce, including founder Jonathan Ross and President Sunny Madra.
| Acquirer | Date | Type | Price | EV/Revenue |
|---|---|---|---|---|
| 24 Dec 2025 | Strategic M&A | $20B | 40.0x |
Groq Valuation
Groq is currently valued at $3.5B, based on its undisclosed-stage round in August 2026.
The $350M round was led by Disruptive, with participation from NVIDIA.
Groq's valuation has grown 3.5x from $1B at its Series C in April 2021 to $3.5B in August 2026, across 4 priced rounds.
Groq valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Aug 2026 | Undisclosed stage | $3.5B | - |
| Sep 2025 | Series E | $6.9B | 76.7x |
| Aug 2024 | Series D | $2.8B | 31.1x |
| Apr 2021 | Series C | $1B | - |
Groq Revenue
Groq's latest recorded revenue is $90M, as of its Series E in September 2025. At a $6.9B valuation, that implies a 76.7x revenue multiple.
Revenue moved from $90M in August 2024 to $90M in September 2025, while the revenue multiple moved from 31.1x to 76.7x.
Groq revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Sep 2025 | $90M | $6.9B | 76.7x | Series E |
| Aug 2024 | $90M | $2.8B | 31.1x | Series D |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Groq Funding History
Groq has raised a total of $2.8B across 7 funding rounds.
Groq's first fundraising round was a $10M Series A in April 2017. The most recent completed round was a $350M undisclosed-stage round in August 2026.
Groq funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Aug 2026 | Undisclosed stage | Disruptive (lead); NVIDIA | $350M | $3.5B | Groq announced a $350 million Series A financing on August 17, 2026, led by Disruptive with planned participation from NVIDIA. The round valued Groq at $3.5 billion and was presented as part of the company’s ongoing build-out of its AI inference cloud and global inference footprint. The financing followed Groq’s $650 million raise in June 2026, bringing its recent funding total to $1 billion. The company said the capital would support expansion of its inference-cloud infrastructure, consistent with its shift from chip startup toward a provider of AI computing capacity. Groq develops AI inference technology and has positioned its systems to serve pre-trained model workloads at scale. |
| Jun 2026 | Undisclosed stage | Disruptive (lead); Infinitum Partners (lead) | $650M | - | Groq Inc. secured $650 million in new growth capital in a funding round led by Disruptive and Infinitum, announced on June 22, 2026. This round, aimed at scaling Groq's AI inference cloud business and expanding data center capacity, comes roughly six months after Nvidia signed a reported $20 billion licensing agreement for Groq's technology and hired away founder Jonathan Ross and several key executives. The strategic rationale centers on pivoting the former chip startup into a supplier of artificial intelligence computing infrastructure, targeting 200 MW in capacity by the end of 2027. Groq, founded by Jonathan Ross and Douglas Wightman and headquartered in San Francisco, California, is a pioneer in AI inference. The company previously raised $750 million in September 2025 at a post-money valuation of $6.9 billion, with Disruptive having invested nearly $350 million in the company across rounds. Current investors are receiving returns from the Nvidia agreement, with additional cash distributions anticipated shortly. |
| Sep 2025 | Series E | Disruptive (lead); Infinitum Partners; Neuberger Berman; Cisco Investments; Samsung Catalyst Fund; Altimeter; BlackRock; D1 Capital Partners; DTCP; 1789 Capital | $750M | $6.9B | Groq, an AI inference chip startup using Language Processing Units (LPUs), raised $750 million in new financing on September 17, 2025, led by Disruptive with nearly $350 million invested, and participation from BlackRock, Neuberger Berman, Deutsche Telekom Capital Partners, Samsung Catalyst Fund, Cisco Investments, D1 Capital Partners, Altimeter, 1789 Capital, and Infinitum Partners. The round achieved a post-money valuation of $6.9 billion, up from $2.8 billion in its August 2024 Series D and following a July 2025 negotiation for ~$600 million at $6 billion that expanded due to demand. Total funding exceeds $2.4 billion, including a $1.5 billion non-dilutive commitment from Saudi Arabia's Humain in February 2025. Groq powers over 2 million developers and enterprises like Dropbox, Vercel, Volkswagen, Canva, Robinhood, Riot Games, Workday, and Ramp, offering sub-millisecond latency and lowest cost per token per Artificial Analysis benchmarks. The company operates data centers in North America, Europe, the Middle East, and is expanding to Asia-Pacific, targeting 108K LPU deployments by Q1 2025. It positions itself as part of the American AI Stack, aligning with White House export promotion for U.S. AI technology, competing with Nvidia by focusing on efficient inference over training. |
| Aug 2024 | Series D | Alumni Ventures (lead); BlackRock (lead) | $640M | $2.8B | Groq is an AI chip startup specializing in Language Processing Units (LPUs) optimized for fast AI inference, outperforming traditional GPUs in speed and cost for executing AI models. The company shifted focus from hardware sales to its GroqCloud platform, serving over 350,000 developers. On August 5, 2024, Groq raised $640 million in a Series D funding round led by BlackRock funds (including BlackRock Private Equity Partners), with participation from Neuberger Berman, Type One Ventures, Cisco Investments, Global Brain’s KDDI Open Innovation Fund III, and Samsung Catalyst Fund, achieving a $2.8 billion valuation. Funds will scale capacity with plans to deploy over 100,000 chips by Q1 2025 and 1 million by end of 2025, hire talent, and develop next-gen LPUs. Groq positions as a key player in AI inference infrastructure amid intensifying competition. Later developments include a September 2025 $750 million raise at $6.9 billion post-money valuation led by Disruptive with BlackRock participation, powering over 2 million developers. By December 2025, NVIDIA announced a $20 billion deal for Groq’s inference IP license and assets, with personnel joining NVIDIA while GroqCloud operates independently under new leadership, highlighting GroqCloud's recurring revenue potential and 2 million developers. |
| Apr 2021 | Series C | D1 Capital Partners (lead); Tiger Global (lead) | $300M | $1B | Groq Inc., headquartered in Mountain View, California, develops compute accelerators for artificial intelligence, machine learning, and high-performance computing, featuring its innovative Language Processing Unit (LPU) technology designed for efficient AI inference and training. The company announced the closing of its $300 million Series C funding round on April 14, 2021, co-led by Tiger Global Management and D1 Capital Partners, with participation from The Spruce House Partnership, Addition (founded by Lee Fixel), GCM Grosvenor, Xⁿ, Firebolt Ventures, General Global Capital, Tru Arrow Partners, and follow-on investments from TDK Ventures, XTX Ventures, Boardman Bay Capital Management, and Infinitum Partners. This round brought Groq's total funding to $367 million at the time and marked its entry into unicorn status with a $1 billion valuation. The funding was intended to support business growth, talent recruitment, and acceleration of next-generation product development across industries. Investors highlighted Groq's software-first approach, innovative chip architecture, and potential to deliver order-of-magnitude improvements in compute-per-energy efficiency, addressing energy consumption challenges in hyperscale data centers. Quotes from Tiger Global's Scott Shleifer emphasized the chip's capability for both inference and training applications, while TDK Ventures noted its environmental impact. This Series C built on prior rounds, including a $10 million seed from Social Capital in 2017, positioning Groq as a challenger to Nvidia in the AI chip market with superior performance metrics like processing up to 800 tokens per second for large language models. Subsequent developments saw valuations rise to $2.8 billion in August 2024 and $6.9 billion in September 2025 after later rounds totaling over $3 billion in funding, reflecting sustained investor confidence in its AI infrastructure focus. |
| Sep 2018 | Series B | Social Capital (lead); Acequia Capital (AceCap); Capitoria; NJF Capital; Blue Gentian Capital; Cambium Capital Partners | $52M | - | - |
| Apr 2017 | Series A | Social Capital (lead); Daniel Gross; Conconi Growth Partners | $10M | - | - |
Who has invested in Groq?
21 investors have backed Groq across its funding rounds, including Disruptive, Social Capital, BlackRock, D1 Capital Partners, Infinitum Partners and Alumni Ventures.
Lead investors include Disruptive, Infinitum Partners, Alumni Ventures, BlackRock, D1 Capital Partners and 2 other investors.
Groq Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 3 | Lead | Sep 2025 | ||
| 2 | Lead | Sep 2025 | ||
| 2 | Lead | Apr 2017 | ||
| 2 | Lead | Aug 2024 | ||
| 2 | Lead | Apr 2021 | ||
| 1 | Participant | Aug 2026 | ||
| 1 | Participant | Apr 2017 | ||
| 1 | Participant | Apr 2017 | ||
| 1 | Participant | Sep 2018 | ||
| 1 | Participant | Sep 2025 | ||
| 1 | Participant | Sep 2025 | ||
| 1 | Participant | Sep 2025 | ||
| 1 | Participant | Sep 2018 | ||
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Start Free TrialAcquisitions by Groq
Groq has acquired 2 companies to date.
Last acquisition by Groq was on March 1st 2024. Groq acquired Definitive Intelligence for undisclosed valuation.
Latest Acquisitions by Groq
| Description | Definitive Intelligence leads in generative AI for business data utilization through APIs such as Definitive Advisor, Definitive Chat, and Pioneer. Headquartered in Tel Aviv, it enables gasless Q&A on live datasets from PostgreSQL and MongoDB. Enterprises deploy it for automated reporting, cutting analysis time from days to minutes. | - |
| HQ Country | ||
| HQ City | San Francisco, CA | - |
| Deal Date | 1 Mar 2024 | 1 Mar 2022 |
| Valuation | undisclosed | undisclosed |
| EV/Revenue | ||
| EV/EBITDA | ||
This data is available for Pro users. Sign up to see all Groq acquisitions and their M&A valuation multiples. Start Free Trial | ||
Groq Competitors
Groq competitors include listed companies like CoreWeave, Nebius Group, Core Scientific and C3.ai, and private ones like Nscale and SambaNova.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | $33M | - | $15B | 442.4x | ||
| Publicly listed | $5.1B | $2.5B | $44B | 8.4x | ||
| Publicly listed | $530M | $512M | $59B | 24.2x | ||
| Publicly listed | $319M | ($211M) | $5.5B | 13.9x | ||
| Publicly listed | $250M | ($484M) | $1.7B | 4.5x | ||
| Private | $100M | - | $11B | - |
Groq Public Comps
Groq is no longer listed, but its public comps include Digital China, Sinch, Ionic Digital, Fastly, Sinnet Technology, Biprogy, Megaport, ChronoScale, OVHcloud and Netweb Technologies India.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $21B | $206M | 0.3x | 0.3x | 28.1x | - | |||
| $2.8B | $313M | 1.5x | 1.4x | 13.2x | 11.1x | |||
| $141M | ($248M) | 25.4x | - | (14.5x) | - | |||
| $624M | ($41M) | 6.4x | 5.6x | (97.1x) | 33.1x | |||
| $1.1B | $72M | 3.5x | 3.6x | 51.4x | 18.4x | |||
| $2.8B | $389M | 1.1x | 1.1x | 8.2x | 7.9x | |||
| $222M | $15M | 12.3x | 9.9x | 181.8x | 32.6x | |||
| $72M | $21M | 42.5x | - | 147.6x | - | |||
This data is available for Pro users. Sign up to see all Groq competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Groq
| When was Groq founded? | Groq was founded in 2016. |
| Where is Groq headquartered? | Groq is headquartered in San Francisco, CA, United States. |
| Is Groq publicly listed? | No, Groq was acquired by NVIDIA in December 2025. |
| Who acquired Groq? | Groq was acquired by NVIDIA in December 2025. |
| How much was Groq acquired for? | Groq was acquired for $20B in December 2025, a 40.0x revenue multiple. |
| What is Groq's valuation? | Groq was last valued at $3.5B in its undisclosed-stage round in August 2026. |
| How much funding has Groq raised? | Groq has raised $2.8B across 7 funding rounds. |
| What was Groq's last funding round? | Groq's last funding round was a $350M undisclosed-stage round in August 2026, led by Disruptive. |
| Who are Groq's investors? | Groq's investors include Disruptive, Infinitum Partners, Social Capital, BlackRock, D1 Capital Partners, NVIDIA, Daniel Gross, Conconi Growth Partners, Acequia Capital (AceCap), Neuberger Berman and 11 others. |
| What is Groq's revenue? | Groq's latest recorded revenue is $90M (September 2025). |
| What is Groq's revenue multiple? | Groq's latest valuation implies a 76.7x revenue multiple ($6.9B valuation on $90M of revenue). |
| Which companies are comparable to Groq? | Companies comparable to Groq include Nscale, CoreWeave, Nebius Group, Core Scientific, C3.ai and SambaNova. |
| How many companies has Groq acquired? | Groq has acquired 2 companies, including Definitive Intelligence and Maxeler Technologies. |
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