AsianFin -- AI chip startup Groq announced Wednesday that it has raised $750 million in a new funding round, valuing the company at $6.9 billion post-money.

The deal exceeded earlier reports from July that suggested a $600 million raise at a near-$6 billion valuation.

This marks a sharp rise from August 2024, when Groq raised $640 million at a $2.8 billion valuation—more than doubling its worth in just over a year. In total, Groq has now secured over $3 billion in funding, according to PitchBook.

Groq has attracted strong investor interest as it works to challenge Nvidia’s dominance in AI computing. Unlike GPUs, which have become the industry standard for powering artificial intelligence systems, Groq’s chips—dubbed LPUs (language processing units)—are designed as inference engines, specialized for running AI models with greater speed and efficiency.