General Compute Raises $100 Million for Non-Nvidia Inference Cloud
Oct 27, 2026
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Groq seeks $8 billion valuation in Series B, up from $3.5 billion in August, Bloomberg reports
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Executive chairman Alex Davis has approached investors, arguing the inference cloud can grow without the debt weighing on listed neoclouds.
Groq is seeking a Series B at an $8 billion valuation, according to documents seen by Bloomberg, Tech Funding News reports. Executive chairman Alex Davis has approached investors; Groq and Disruptive, the investment firm Davis founded, declined to comment. Groq raised $350 million at a $3.5 billion valuation in August.
Nvidia signed a non-exclusive licensing deal for Groq's technology in December 2025 and hired founder Jonathan Ross, president Sunny Madra and other staff. Groq has since rebuilt itself as an inference cloud and says it runs 13 data centres for more than six million developers, with plans to grow capacity from 54 megawatts to more than 200 in 2027.
In a letter to investors, Davis argues Groq can grow margins without the debt that weighs on listed neoclouds, and the new money would help meet demand through short- and medium-term contracts. He expects revenue to grow eightfold in 2027 and EBITDA to reach $2 billion by 2028; Groq is private and has published no accounts, so neither forecast can be checked.
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