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Groq Secures $750 Million Funding, Positioned to Disrupt AI Chip Market
Groq has raised $750 million in capital, valuing the company at $6.9 billion. The funding round includes notable investors such as Samsung, Cisco, and BlackRock. Groq is focusing on developing language processing units (LPUs) that are optimized for artificial intelligence (AI) inference workloads, as opposed to the graphics processing units (GPUs) from Nvidia and AMD, which are tailored for training generative AI models.
Currently, Nvidia holds approximately 90% of the AI accelerator market. Groq’s emergence signifies a potential shift in the semiconductor landscape, as AI workloads diversify and may prompt cloud providers to consider alternatives to Nvidia’s offerings, thereby increasing competition in the industry.
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