AI chip startup Groq secures US$1.5 billion commitment from Saudi Arabia
Groq is known for producing AI inference chips that optimise speed and execute commands of pre-trained models
US SEMICONDUCTOR startup Groq said on Monday (Feb 10) it has secured a US$1.5 billion commitment from Saudi Arabia to expand the delivery of its advanced artificial intelligence (AI) chips to the country.
The Silicon Valley firm, founded by a former Alphabet AI chip engineer, is known for producing AI inference chips that optimise speed and execute commands of pre-trained models.
The startup has an existing agreement with Aramco Digital, the technology subsidiary of oil major Aramco, through which the companies built a critical AI hub in the region in December.
Groq said it will receive funds over the course of this year to expand its existing data centre in Dammam. The company’s chips, which specialise in fast responses from chatbots and other large language models, are subject to US export controls, but Groq said it has obtained the licenses it needs to ship them to Dammam.
The commitment was announced at Saudi’s global technology event, Leap 2025. At this event, the country secured US$14.9 billion in fresh AI investments.
One of the technologies that the Dammam data centre will support is an AI technology called Allam, an AI language model that works in both Arabic and English and was developed by the Saudi government.
In August, Groq clinched a valuation of US$2.8 billion after raising US$640 million in a funding round led by Cisco Investments, Samsung Catalyst Fund and BlackRock Private Equity Partners. REUTERS
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