AI chip startup Groq raises $1.5B from Saudi Arabia
American semiconductor startup Groq announced Monday it has received investment commitments of $1.5B from Saudi Arabia to expand advanced AI chip supplies to the kingdom.
The Silicon Valley company, founded by a former Alphabet AI chip engineer, specializes in manufacturing AI inference microchips optimized for high-speed execution of pre-trained model commands. The investment will be directed toward expanding Groq’s existing data center in Dammam, established in December 2024 in collaboration with Aramco Digital, the technology division of oil giant Aramco.
Groq chips’ uniqueness lies in their ability to provide fast responses for chatbots and other large language models. Despite current US export restrictions, the company has obtained necessary licenses to supply equipment to Dammam.
The funding announcement was made at the LEAP 2025 global technology event in Saudi Arabia, where the country attracted a total of $14.9B in new AI investments. The Dammam data center is expected to support Allam – a Saudi government-developed AI model capable of working with both Arabic and English languages.
This funding follows a successful investment round in August, when Groq reached a $2.8B valuation, raising $640M led by Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners.
This agreement reflects the growing trend of AI technology market globalization and Middle Eastern countries’ aspiration for technological leadership through strategic investments in advanced developments.
