Groq seeks $8B valuation for Series B, more than double its August mark
What's the deal? Data centre operator Groq is seeking an $8 billion valuation for a Series B round, according to documents seen by Bloomberg. Executive chairman Alex Davis has approached investors about the round, which excludes the new capital. Groq and DisruptiveDealroom has a profile for this one. Try Dealroom →, the investment firm Davis founded, declined to comment.
The numbers: The ask is more than 2.5 times the $3.15 billion valuation Groq set in August, when it raised $350 million. Davis told investors he expects revenue to grow eightfold in 2027 and earnings before interest, taxes, depreciation and amortisation to reach $2 billion by 2028.
What's the endgame? Founded in 2016, Groq once built its own chips to rival Nvidia. In December 2025, Nvidia signed a licensing deal reportedly worth $20 billion and hired founder and chief executive officer Jonathan Ross, president Sunny Madra, and other staff.
The remaining team rebuilt Groq as an inference cloud — renting the computing power that runs trained AI models — with a focus on cybersecurity. The new money would help meet "substantial demand for its inference compute through short- and medium-term contracts," the letter says.
Why now? The pitch lands as public investors sell off listed neoclouds such as CoreWeave and Nebius over heavy borrowing and doubts about how long AI infrastructure spending can last. Davis argues Groq is better placed, saying rivals' debt reliance limits "their ability to thrive as truly successful businesses" and leaves them "simply acting as industry facilitators with massive unmet obligations."
What could go wrong? Groq is private and has published no accounts, so neither its revenue nor EBITDA forecast can be tested. The proposed valuation is not a completed deal. Elon Musk, whose SpaceX competes in the market, recently predicted "200+ neoclouds are going to see guppy-level death and consolidation."
The signal: Groq's bid is a test of whether private investors still reward rapid growth over the sector's financing and execution risks, even as public markets turn cautious. Its ability to close the round may matter more than the headline $8 billion figure.
Read more: Bloomberg, Tech Funding News
Image credit: cbowns
