Groq eyes $6 billion valuation after $1.5 billion Saudi AI chip deal

Groq is a U.S. semiconductor startup that makes special AI chips used for running AI tasks very fast. The company is talking to investors to raise $300 million to $500 million. If this works out, Groq’s valuation would go up to $6 billion after the investment.

The money is needed to deliver on a deal with Saudi Arabia that was signed recently. Back in February 2024, Saudi Arabia promised $1.5 billion to help Groq deliver more of its AI chips to them, according to the report by Reuters.