ReutersGroq's AI chips are powering a major global expansion after a billion-dollar Saudi Arabia deal. Groq is a U.S. semiconductor startup that makes special AI chips used for running AI tasks very fast. The company is talking to investors to raise $300 million to $500 million. If this works out, Groq's valuation would go up to $6 billion after the investment.The money is needed to deliver on a deal with Saudi Arabia that was signed recently. Back in February 2024, Saudi Arabia promised $1.5 billion to help Groq deliver more of its AI chips to them, according to the report by Reuters.ALSO READ: Trump Sanctions UN Expert Francesca Albanese Over Gaza, Israel Criticism and ICC Support Saudi deal could bring big moneyGroq told investors that its Saudi contracts could make them $500 million in revenue this year. In August 2023, Groq raised $640 million in a big funding round. That round was led by Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners, and Groq's valuation became $2.8 billion at that time, as stated in the reports.ALSO READ: Amazon Prime Day 2025 sales drop 41% on day 1 despite 4-day event – shoppers wait for better deals Groq is based in Silicon Valley and is known for making AI inference chips — chips that are really good at running pre-trained AI models super fast. Groq didn’t reply when Reuters asked for a comment, as mentioned in the report by Reuters. Live EventsFAQsQ1. Why is Groq raising more money now?To fund its new $1.5 billion AI chip deal with Saudi Arabia.Q2. How much is Groq worth after new investment?Groq may be valued at $6 billion post-investment.(You can now subscribe to our Economic Times WhatsApp channel) Read More News onGroq fundingGroqAI chip startup GroqSaudi Arabia AI dealAI semiconductor companiesAI inference chipsGroq investorsSilicon Valley chip startupsAI chips$6 billion valuation (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGroq fundingGroqAI chip startup GroqSaudi Arabia AI dealAI semiconductor companiesAI inference chipsGroq investorsSilicon Valley chip startupsAI chips$6 billion valuation(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123