--- title: "Groq asks private investors for $8 billion, 2.5 times its August price" description: "The round is live and unclosed while a Delaware suit argues the technology behind the pitch still belongs to shareholders Nvidia may have bought outright." publisher: "The Inference" section: "Deals" published: 2026-11-11T16:13:33.067Z modified: 2026-11-11T16:13:33.067Z canonical: https://theinference.org/article/groq-asks-private-investors-for-8-billion-2-5-times-its-august-price language: en keywords: "Groq, Funding, AI Infrastructure, Valuation, Nvidia, Private Markets" --- # Groq asks private investors for $8 billion, 2.5 times its August price > The round is live and unclosed while a Delaware suit argues the technology behind the pitch still belongs to shareholders Nvidia may have bought outright. [Groq](https://theinference.org/markets/companies/groq) is asking private investors to price it at $8 billion, before the new money, about 2.5 times the mark investors paid in August, after public markets spent the past week selling debt-funded rivals [1][2][8]. Executive chairman Alex Davis, who chairs Groq and runs Disruptive, the firm that led its August round, pitched the Series B in [documents Bloomberg saw](https://finance.yahoo.com/technology/ai/articles/nvidia-backed-groq-seeks-8-013053376.html), arguing Groq can widen margins without borrowing while rivals pile up obligations that leave them "simply acting as industry facilitators with massive unmet obligations" [1][2]. The round is live and unclosed, which makes it the sharpest test this month of whether late-stage funds still pay up for AI infrastructure. ## The ask doubles the last mark August's Series A raised $350 million at a $3.15 billion pre-money valuation, so the ask is roughly two and a half times the price of three months ago [2][3][4]. It would also top the $6.9 billion Groq carried in September 2025, before [Nvidia](https://theinference.org/markets/companies/nvidia)'s December licensing deal took founder [Jonathan Ross](https://theinference.org/markets/people/jonathan-ross), president Sunny Madra and most of the engineering team, and left the remainder renting out Nvidia-powered data centers for inference [1][3][5][8]. *Chart: **Groq's $8 billion ask tops its pre-Nvidia peak, on a pre-money basis** Column chart of Groq's valuation marks with basis labeled: $6.9 billion post-money in September 2025, $3.5 billion post-money after the August 2026 Series A, and an $8 billion pre-money ask in November 2026, an unclosed target shown dashed.* *Groq valuation marks in billions of dollars. September 2025 and August 2026 are post-money round values; the November 2026 bar is a pre-money ask reported by Bloomberg, not a closed deal. Sources: AIStockWire, Ultrathink, GEroundtable, Yahoo/Investing.com. [1][3][5][8]* ## The projections have nothing to stand on Davis's letter projects eightfold revenue growth in 2027 and $2 billion of EBITDA by 2028 [1][8]. Groq publishes no accounts, so there is no current revenue to measure that against, and the 13 data centers and the plan to grow from 54 megawatts past 200 in 2027 are [company figures from the August release](https://ultrathink.ai/news/groq-seeks-series-b-8b-valuation), not Series B terms [3][4]. The no-debt argument is Davis's strongest card, but investors cannot verify it, because the balance sheet behind it is private [2][8]. ## The docket shadows the assets being priced Nvidia's 10-K books the Groq license at $16.9 billion, most of it goodwill for the people, plus $3 billion of engineer stock per [the Delaware complaint](https://theinference.org/article/dell-ships-groq-s-inference-chips-under-nvidia-s-badge-a-delaware-suit-calls-the-17-billion-license-a-sale) [6]. Two former engineers argue in the Delaware Court of Chancery that the license was really a sale of the whole company, and the Justice Department has demanded Nvidia's Groq files [6]. What is new is the second half of the ledger: the company that kept the data centers is now pricing itself at $8 billion on top of assets still contested in court [1][6]. A de facto-acquisition finding would not touch the Series B cash, but it would reopen who owns the technology story Davis is selling. ## Price the contracts, not the letter Groq is asking less than half of what [Etched](https://theinference.org/markets/companies/etched), a rival inference-chip startup with $1 billion of booked orders, is [reportedly seeking at $20 billion](https://pauls-ai.beehiiv.com/p/etched-is-reportedly-raising-at-a-20-billion-valuation-quadrupling-its-worth-in-seven-months-and) [7]. The spread between what Etched can book in contracts and what Groq can only project is the case for pricing the two differently. If Groq closes near its ask, it sets the sector's private pricing benchmark while [CoreWeave](https://theinference.org/markets/companies/coreweave) and [Nebius](https://theinference.org/markets/companies/nebius) report earnings this week; if it fumbles, even a debt-light story could not escape the selloff [1][5]. ## Takeaway Groq's live $8 billion Series B ask is the sharpest test of whether private funds still pay up for AI infrastructure, pitched debt-free while a Delaware suit contests the technology behind the numbers. ## Sources 1. [AIStockWire, Groq reportedly seeks $8 billion valuation, faults debt-heavy rivals, 6 November 2026](https://aistockwire.com/blog/groq-8-billion-valuation-series-b-alex-davis-nvidia-nvda-november-2026) 2. [Dealroom News, Groq seeks $8B valuation for Series B, more than double its August mark, 10 November 2026](https://dealroom.co/news/170812-groq-seeks-8b-valuation-for-series-b-more-than-double-its-august-mark/) 3. [Ultrathink, Groq Seeks a Series B at an $8B Valuation, Bloomberg Reports, 9 November 2026](https://ultrathink.ai/news/groq-seeks-series-b-8b-valuation) 4. [TokenPost, Groq Executive Chairman Seeks $8 Billion Valuation in Series B Pitch, 11 November 2026](https://www.tokenpost.com/news/business/52199) 5. [GEroundtable, Groq Wants $8 Billion as AI Infrastructure Splits Over Debt, 9 November 2026](https://geroundtable.com/groq-8-billion-series-b-valuation/) 6. [The Inference, Dell ships Groq's inference chips under Nvidia's badge; a Delaware suit calls the $17 billion license a sale, 6 November 2026](https://theinference.org/article/dell-ships-groq-s-inference-chips-under-nvidia-s-badge-a-delaware-suit-calls-the-17-billion-license-a-sale) 7. [Paul's AI, Etched is reportedly raising at a $20 billion valuation, 9 November 2026](https://pauls-ai.beehiiv.com/p/etched-is-reportedly-raising-at-a-20-billion-valuation-quadrupling-its-worth-in-seven-months-and) 8. [Yahoo Finance (Investing.com, citing Bloomberg), Nvidia-backed Groq seeks $8 billion valuation in new funding round, 6 November 2026](https://finance.yahoo.com/technology/ai/articles/nvidia-backed-groq-seeks-8-013053376.html) --- Groq asks private investors for $8 billion, 2.5 times its August price — The Inference. Canonical: https://theinference.org/article/groq-asks-private-investors-for-8-billion-2-5-times-its-august-price