Groq lines up $650m for ‘neocloud’ spin-out after $20b Nvidia deal
Groq is raising up to $650 million from existing investors to fund a new “Groq2” entity, just months after inking a $20 billion licensing and asset deal with Nvidia that effectively rewired the AI chipmakers future.Groq seeks up to $650m to build AI “neoclouds” after Nvidia tie-up.Nvidia‘s $20b Groq agreement leaves cloud business and IP in Groq’s hands.New Groq2 unit will pivot away from chip manufacturing toward AI infrastructure services. Groq Inc. is raising as much as $650 million from its current backers to capitalize a new company that will focus on building AI “neoclouds,” following a landmark $20 billion licensing agreement under which Nvidia agreed to acquire Groqs inference technology assets and hire much of its senior leadership. According to Axios, existing investors, including Disruptive and Infinitum, are prepared to cover the entire $650 million round if necessary, with participation offered pro rata to current shareholders in the successor Groq2 vehicle. Source: Groq is raising ~$650M from existing investors; the AI chipmaker earlier signed a $20B Nvidia licensing deal that saw much of its senior team depart (@danprimack / Axios) (Visit Techmeme dot com for the link and full context!) — Techmeme (@Techmeme) May 28, 2026 The fundraising comes on the heels of Nvidia‘s
