Groq Seeks a Series B at an $8B Valuation, Bloomberg Reports

Groq is seeking a Series B at an $8 billion valuation, not including the money it hopes to raise, according to documents Bloomberg saw. Executive chairman Alex Davis has approached investors. The round is not closed. Groq and Davis's firm, Disruptive, declined to comment.

The numbers

• $8 billion is the valuation Davis is asking for, before Series B proceeds. Bloomberg reported that on November 6 from investor documents. No close has been announced.
• Groq said on August 17 that a $350 million Series A led by Disruptive, with planned participation from Nvidia, values the company at $3.5 billion. Bloomberg said the August figure was $3.15 billion before that $350 million.
• Davis expects revenue to grow eightfold in 2027, and EBITDA to reach $2 billion by 2028. That is his letter to investors, as Bloomberg reported and Investing.com carried. Groq has published no accounts.
• The August release says Groq runs 13 data centers and expects to scale from 54 megawatts to more than 200 megawatts in 2027. Those are company figures from the Series A, not new Series B terms.

What Davis told investors

The $8 billion ask is a pre-money number. Set next to Bloomberg's $3.15 billion August value, also before that round's $350 million, it is about 2.5 times the last mark. Set next to the $3.5 billion Groq printed in August, the jump looks smaller, because one figure includes the August money and the other does not.

Investing.com, citing Bloomberg, said the letter pitches the new capital for "substantial demand" for inference compute on short- and medium-term contracts. Davis argued Groq can widen margins without debt, and he criticized rivals that fund data centers with borrowing. Bloomberg tied the pitch to selling in listed neocloud shares. Investing.com named CoreWeave and Nebius, and said the pressure is over heavy borrowing and resistance to new data centers after the U.S. midterms.

What the August round actually said

Groq's August 17 release says the Series A, together with $650 million raised in June, brings recent funding to $1 billion. The company said it serves more than six million developers, Fortune 500 firms, and thousands of AI companies, across 13 data centers in North America, Europe, the Middle East, and Asia Pacific. The release calls Groq an Nvidia Cloud Partner and says the capital supports medium and larger clusters of Nvidia computing for training and inference. It also says the fundraise is subject to customary closing conditions.

Davis chairs Groq and is chief executive of Disruptive, which led the August round. In the release he said the company is building "the world's leading AI inference cloud" and wants to keep working with Nvidia.

"Inference will without a doubt become the largest and most critical layer of AI infrastructure."

Alex Davis, Groq executive chairman and chief executive of Disruptive, in the August 17 release

The company Nvidia hired from

Groq started in 2016 as a chipmaker. Bloomberg reported a $20 billion licensing agreement with Nvidia late last year, under which Nvidia hired founder and former chief executive Jonathan Ross and other employees, Investing.com wrote. What remained sells inference, with a focus on cybersecurity, Bloomberg reported.

Bloomberg's August story said Groq's valuation peaked at $6.9 billion last September, and that $3.5 billion was roughly half that peak. Nvidia was set to invest in the August round, that story said. The company's own release said Nvidia's participation was planned, not that it had closed.

What we are watching

This is a report of a process, not a round. Groq has not named a lead for the Series B, a check size, or a close date. The eightfold revenue line and the $2 billion EBITDA line are Davis's forecast. The 13 data centers and the path from 54 megawatts to more than 200 in 2027 are the August plan. The story changes if investors fund the $8 billion ask, or if Groq publishes the revenue the letter projects.