Groq seeks $8 billion valuation in new funding round, aiming to more than double in three months as AI stocks slide

Bloomberg reported on November 6 that Nvidia-backed AI cloud company Groq is pitching investors on a new Series B funding round at an $8 billion pre-money valuation, about 2.5 times its August mark. Groq and lead investor Disruptive declined to comment; the amount to be raised and the lead investor have not been disclosed, and the valuation is a management target rather than a completed pricing. (Photo: file photo of an AI data centre.)

Valuation target doubles in three months, as AI stocks pull back

Groq closed a $350 million Series A on August 17, led by Disruptive with planned participation from Nvidia, at a $3.15 billion pre-money valuation (about $3.5 billion including the new money). Executive chairman Alex Davis told investors in a letter that Groq can grow its margins without taking on much debt, and criticised rivals for leaning too heavily on debt markets. The pitch comes as AI infrastructure stocks slide: the Nasdaq fell 5.5 percent on Thursday, November 5, and data-centre operators CoreWeave and Nebius dropped, as investors question the debt-fuelled buildout of AI infrastructure.

From chipmaker to AI inference cloud operator

Groq began as an AI inference chip company. In December 2025, Nvidia paid about $20 billion for a non-exclusive licence to its inference technology and hired founder Jonathan Ross and other senior leaders; Groq then rebuilt itself as an AI inference cloud operator and became an Nvidia Cloud Partner in August 2026. The company now runs 13 data centres and is scaling capacity from 54 megawatts toward more than 200 megawatts in 2027. Its valuation was $6.9 billion in September 2025, roughly double the August 2026 mark.

Valuation not set, and scepticism remains

The reporting notes that $8 billion is only the target management has put to investors, the round is not closed, and the company has not disclosed revenue, inference volumes or capital spending. Whether Groq can command that valuation in an AI selloff will depend on customer demand and long-term profitability, not on computing capacity alone.