Nvidia Deal Fallout: Groq Valued at $3.5 Billion After $350 Million Funding Round

Groq, a startup that develops hardware to rival Nvidia's market dominance, has secured $350 million in funding at a valuation of $3.5 billion.

This financing round comes nearly a year after Nvidia struck a licensing deal with Groq and hired away much of its talent.

The funding was led by Disruptive, an investment firm based in Dallas, with Nvidia set to invest as well.

Groq's valuation has decreased significantly from $6.9 billion last September, but the company plans to use the new funds to expand its data center capacity to over 200 megawatts next year.