# Groq is seeking $650 million from its investors.

*semiconductor, genai · news · 2026-05-28 · The Economic Times*

## Key points

- Groq secured a $17 billion licensing deal with Nvidia in December.
- Groq is shifting focus from hardware to AI inferencing technology.
- Investors received payouts from the Nvidia deal and a final cash distribution is expected soon.
- Groq is raising $650 million, backed by Disruptive and Infinitum if undersubscribed.
- Nvidia is developing a special version of Groq's AI chips for the Chinese market.

Synopsis Groq is seeking $650 million from its investors. This comes after a significant $17 billion licensing deal with Nvidia. Groq is now concentrating on AI inferencing. Investors are set to receive payouts from the Nvidia deal. They will then have the chance to invest in Groq's new phase. This move signals a strategic shift for the AI chip startup. Listen to this article in summarized format Groq is raising up to $650 million from existing investors, Axios reported on Thursday, after the AI chip startup signed a $17 billion licensing deal with Nvidia in December. Groq has ‌been ⁠shifting focus ⁠away from hardware toward AI inferencing, where it specialises in enabling trained AI models to respond to user requests. The startup's investors have already received payouts, with ​a final cash distribution ⁠expected soon ‌through the Nvidia deal, ​Axios ​reported. Investors are now being ⁠asked to participate in Groq 2.0, with existing backers Disruptive and Infinitum backstopping the $650 million raise if it is not fully subscribed, the report said. Existing shareholders will receive the remaining cash distributions and then ‌have the opportunity to invest in a new company, Axios reported. ​Groq ​did not ⁠immediately respond to Reuters' request for comment. Nvidia is preparing a version of its Groq ​AI chips that can be sold to the Chinese market, two sources familiar with the matter told Reuters in March. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Subscribe Now

**Companies:** Nvidia, Groq
**Countries:** China

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/tech/artificial-intelligence/groq-targets-650-million-fundraise-after-nvidia-licensing-deal-report/articleshow/131373538.cms)

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