Groq Seeks $8 Billion Valuation for Its AI Cloud, Three Months After a Price Cut

The effort is being led by executive chairman Alex Davis, and the $8 billion figure excludes any money raised in the new Series B round, according to Bloomberg. In August, Groq was valued at $3.15 billion before the $350 million it raised then, or about $3.5 billion including that cash. The new target would more than double the company's pre-money valuation in about three months.

The pitch arrives in one of the worst weeks this year for AI valuations, as a sell-off in chip and AI stocks has prompted investors to reprice private companies and upcoming listings. Davis has also criticised rivals among the so-called neoclouds, the specialist providers that rent out AI computing capacity, for relying too heavily on debt markets, Bloomberg reported.

Groq began as a designer of chips built for inference, the work of running trained AI models. In December 2025, Nvidia struck a non-exclusive licensing deal for that technology, reported to be worth about $20 billion, and hired Groq founder Jonathan Ross and president Sunny Madra along with other staff. What remained of Groq has since moved away from selling its own hardware and towards operating an inference cloud that sells access to computing capacity, including on Nvidia infrastructure.

That shift came with a lower price tag. Groq had been valued at $6.9 billion after raising $750 million in September 2025, so the August round cut its valuation roughly in half in less than a year. That round was led by Disruptive, the investment firm Davis founded, and Nvidia was expected to take part, according to Bloomberg's reporting at the time.

At $8 billion before new money, the proposed Series B would value Groq above its September 2025 peak, a test of whether investors will pay up for debt-light compute capacity during a market rout.