Groq Seeks Series B at an $8 Billion Valuation

What happened

According to investor documents seen by Bloomberg, executive chairman Alex Davis has approached investors about the round; $8 billion is a pre-money valuation that excludes the new capital. No amount or lead investor has been named, and the valuation is a target, not a completed deal.

In August, Groq closed a $350 million Series A at a $3.15 billion pre-money valuation, about $3.5 billion after the money, led by Disruptive; on a pre-money basis, $8 billion is about 2.5 times that mark. In a letter to investors, Davis argued Groq can grow margins without relying on leverage and criticized rivals for piling up debt.

Davis expects revenue to grow eightfold in 2027 and earnings before interest, taxes, depreciation and amortization to reach $2 billion by 2028; Groq is private and has published no accounts, so neither forecast can be tested. The new money is meant to meet short- and medium-term contracts for inference compute. In August the company said it operated 13 data centers and planned to grow capacity from 54 megawatts to more than 200 megawatts in 2027.

Key facts

1. This round: Series B at an $8 billion pre-money valuation; amount and lead investor not disclosed; the valuation is a target, not a closed deal
2. August round: Series A of $350 million at a $3.15 billion pre-money valuation, about $3.5 billion after the money; $8 billion is about 2.5 times the pre-money mark
3. Forecasts: Davis expects revenue to grow eightfold in 2027 and EBITDA to reach $2 billion by 2028; the company has published no accounts, so the forecasts cannot be tested
4. Background: In December 2025, Nvidia signed a non-exclusive technology licensing agreement, reportedly worth about $20 billion, and hired founder Jonathan Ross and other key staff; Groq pivoted from chipmaker to inference data-center operator
5. Valuation swings: $6.9 billion in September 2025; down to a $3.15 billion pre-money valuation in August 2026; now targeting $8 billion
6. Market backdrop: The Nasdaq fell 5.5% on Nov 5; data-center operators including CoreWeave and Nebius slid as investors questioned the industry's debt-fueled buildout