AI chip startup Groq discusses valuation of $6 billion, information report

(Reuters) – US semiconductor startup Groq has spoken to investors about raising between $6 billion and $500 million after the investment.

The company is seeking cash to carry out its recent Ink contract with Saudi Arabia, the report said.

In February, GROQ secured a $1.5 billion commitment from Saudi Arabia and expanded its provision of advanced artificial intelligence chips to the country.

Groq told investors that the Saudi deal would help generate around $500 million in revenue this year, the report added.

GROQ did not immediately respond to Reuters’ request for comment.

Last August, Groq raised $640 million in Series D funding rounds including Cisco Investments, Samsung Catalyst Fund and BlackRock Private Equity Partners, raising its valuation to $2.8 billion.

Silicon Valley companies are known for producing AI inference chips that optimize and execute commands on pre-trained models.

(Reporting by Rishabh Jaiswal of Bengaluru, edited by Shailesh Kuber)