FILE PHOTO: Close up of the GroqNode product by Silicon Valley AI chip startup Groq, in Mountain View, California, U.S., July, 2022. Groq Inc./Mark Heaps/Handout via REUTERS/ File Photo
(Reuters) -U.S. semiconductor startup Groq has spoken to investors about raising between $300 million and $500 million at a $6 billion post-investment valuation, The Information reported on Wednesday, citing people with knowledge of the matter.
The company is seeking the cash to fulfill a recently inked deal with Saudi Arabia, the report said.
In February, Groq secured a $1.5 billion commitment from Saudi Arabia to expand the delivery of its advanced artificial intelligence chips to the country.
Groq has told investors that the contracts in Saudi Arabia will help the company bring in about $500 million in revenue this year, the report added.
Groq did not immediately respond to a Reuters request for comment.
In August last year, Groq raised $640 million in a Series D funding round led by Cisco Investments, Samsung Catalyst Fund and BlackRock Private Equity Partners, among others, which brought its valuation to $2.8 billion.
The Silicon Valley firm is known for producing AI inference chips that optimize speed and execute commands of pre-trained models.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Shailesh Kuber)
