Chip startup Groq has raised $650 million in a new funding round, money the company says will go toward expanding its data center footprint, according to Bloomberg.
The round was led by Disruptive and Infinitum, per reporting from Zsana Hoskins of Bloomberg. It arrives on the heels of a deal with Nvidia — the dominant maker of the chips used to train and run artificial intelligence — and Bloomberg frames the fresh capital as helping Groq "pivot" its strategy in the wake of that arrangement.
Groq has set a concrete buildout target: reaching 200 megawatts of capacity by the end of 2027. In plain terms, that is a measure of how much computing power its data centers can draw and deliver — the raw electrical muscle behind the AI services it wants to offer.
The $650 million is not the company's first big check. According to Bloomberg, it follows a $750 million raise in 2025, signaling that investors are continuing to pour money into the firm even as the broader race to build AI infrastructure intensifies.
The sources provided do not spell out the precise terms of the Nvidia deal or what Groq's new strategic direction looks like in detail, so those specifics remain unclear from this reporting.
Why it matters: The funding underscores how much capital is flowing into the companies trying to supply computing power for artificial intelligence — and how even well-funded challengers are recalibrating their plans around Nvidia, the industry's gatekeeper.