Groq

AI Infrastructure · Cloud Computing

Funding

Nvidia-backed Groq reportedly seeks $8B valuation for new Series B

Its executive chairman is pitching a debt-free growth model just as leveraged neocloud rivals face a bruising market selloff.

• Groq executive chairman Alex Davis has approached investors about a new Series B round at an $8 billion valuation, excluding capital raised, according to investor documents seen by Bloomberg.
• Once a chipmaker building AI inference chips, Groq has rebuilt itself as a neocloud, renting inference computing power to more than six million developers across 13 data centers.
• The $8 billion ask is roughly 2.5x the $3.15 billion pre-money valuation Groq set just three months earlier in an August round that raised $350 million.
• The pivot followed a roughly $20 billion licensing deal Nvidia signed with Groq in December 2025, under which Nvidia also hired founder Jonathan Ross and president Sunny Madra.
• Davis is telling investors he expects revenue to grow eightfold in 2027 and EBITDA to hit $2 billion by 2028, while expanding data center capacity from 54 megawatts to over 200.
• The fundraising push comes as shares of listed neoclouds CoreWeave and Nebius sell off on concerns over heavy debt loads and regulatory pushback on data centers after the U.S. midterms.
• Davis is betting that a low-leverage balance sheet becomes the more attractive pitch to investors just as debt-fueled AI infrastructure bets come under scrutiny.