Groq raises $350M at half its prior valuation, pivoting from Nvidia rival to Nvidia customer

Groq raised $350M at a $3.5B valuation, down from $6.9B in September 2025. After a December 2025 licensing deal sent Groq's founder, CEO, and chip team to Nvidia, the company abandoned its LPU silicon and became an Nvidia Cloud Partner on August 12. Nvidia now plans to invest in the neocloud business that buys its GPUs.