How is Groq raising more money?

hasheddan 73 points 32 comments June 02, 2026
www.zach.be · View on Hacker News

Discussion Highlights (7 comments)

ViscountPenguin

I don't really get the value proposition of groq as a user, the performance is really poor for the token price. Data centres on the other hand are becoming a commodity, and I don't see any reason a priori to invest in groq specifically for something like that.

fontain

I’m confused by the confusion. Groq licensed their technology (sold part of their business) to Nvidia for a large amount of money and distributed the spoils to their investors. Seems quite normal? But then the Axios article says… “Existing shareholders will receive the remaining cash distributions and then have the opportunity to invest into a new company” New company? But Groq still exists and continued to exist. “The bottom line: Don't be surprised if this becomes a new transaction template in the AI private markets.” A transaction template? I don’t follow what was novel about this situation. The Meta not-acquisition-acquisition of Scale seems more novel. I guess I feel like Zach’s confusion is because of the way Axios has presented what is happening to Groq. Looking at why actually happened with Groq, it seems like Axios are reporting it weird. Unless Groq really is starting a new company in which case I am equally as confused. edit: when announced last year it was announced as an asset acquisition https://www.cnbc.com/2025/12/24/nvidia-buying-ai-chip-startu...

markpotts123

what's the confusion. Groq offers a fast inference solution that is currently unique (why do you think Nvidia paid $8 billion to end-run around the SEC to acquire the technology). This is good news as it ensures that Groq customers can can be assured continuity to use their service.

caterama

My company had a really terrible experience trying to use Groq, and I would NOT recommend anyone use their service if you need reliability. So many random errors, so many silly quirks.

digitaltrees

Fraud. And insecure bois that wish they were Elon

andai

Do they have any good models yet?

z3ratul163071

as soon as i saw they switched to "call us for quotes" for the new models, i knew they are over.

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