Groq, a US-based AI chip and cloud infrastructure company, has raised $650 million in funding to expand its inference cloud business. The financing round was led by Disruptive and Infinitum. The company did not disclose its current valuation but was last valued at $6.9 billion following a $750 million funding round in September 2025.

The capital infusion comes roughly six months after Nvidia signed a non-exclusive licensing agreement for Groq's language processing unit technology. As part of that arrangement, Nvidia hired Groq founder and chief executive Jonathan Ross, president Sunny Madra, and other executives. Ross, who previously helped design Google's Tensor Processing Unit, had led Groq since its 2016 founding. Doug Wightman initially took over operations following Ross's departure before Adam Winter was appointed chief executive to lead the next phase of expansion.

Under the licensing agreement, Groq retained full ownership of its intellectual property and has redirected its strategy toward operating an inference cloud business, providing fast, real-time AI model processing through data centers rather than selling hardware directly. The company plans to deploy the new capital to scale toward 200 megawatts of capacity by the end of 2027 and upgrade existing facilities with the latest inference technology, including Nvidia's new LPX system, which incorporates Groq's designs.

Groq has also strengthened its executive leadership. Alan Rice, formerly with xAI and Meta, was appointed chief operating officer. Joining next month are Sinclair Schuller as chief technology officer and Rakesh Malhotra as chief product officer. Both executives were previously co-founders of Nuvalence, a software engineering firm acquired by EY in 2024.