AI chipmaker Groq confirms $650M raise, re-staffs after Nvidia’s $20B not-acqui-hire deal
Key takeaways
- What does an AI company do after one of those not-acqui-hire deals, where a rival pays investors a hefty IP licensing fee while poaching its critical talent?
- On Monday, Groq announced a new $650 million funding round, confirming earlier reports.
- Ross, who came from Google, was known in the AI chip world for helping create Google s AI chip, the Tensor Processing Unit.
Why this matters: a development in AI with implications for how people work, create, and decide.
What does an AI company do after one of those not-acqui-hire deals, where a rival pays investors a hefty IP licensing fee while poaching its critical talent? For AI chipmaker Groq, the answer appears to be raise more money from investors — who were said to have profited handsomely after a deal with Nvidia in December — hire more talent, and pivot.
On Monday, Groq announced a new $650 million funding round, confirming earlier reports. The raise comes roughly six months after Nvidia signed a non-exclusive licensing agreement for Groq s technology and hired away founder and CEO Jonathan Ross, president Sunny Madra, and other employees. Groq did not disclose its new valuation. It was last valued at $6.9 billion following a $750 million round in September.
Ross, who came from Google, was known in the AI chip world for helping create Google s AI chip, the Tensor Processing Unit. He teamed up with another Google engineer, Doug Wightman, to launch Groq a decade ago. Wightman stayed on after the Nvidia deal and became CEO.