AI chip startup Groq secures a $1.5 billion commitment from Saudi Arabia

(Reuters) – Semiconductor startup Groq said Monday it has secured a $1.5 billion commitment from Saudi Arabia and expanded its provision of advanced AI chips to the country.

Founded by a former alphabet engineer, GROQ is known for generating AI inference chips that optimize and execute commands from pre-trained models.

The startup has an existing agreement with Aramco Digital, a technology subsidiary of oil major Aramco, through which it built a key AI hub in the region in December.

The commitment, which lacks specific details regarding the timeline or location of an investment, was announced in 2025, Saudi Arabia’s global technology event. The event secured a new $14.9 billion in AI investment.

In August, GROQ was rated at $2.8 billion after raising $640 million in a funding round led by Cisco Investments, Samsung Catalyst Fund and BlackRock Private Equity Partners.

(Reporting by Deboat in Bengaluru, edited by Mohammed Safi Shamsi)