AI chip startup Groq has secured $1.5bn (SR5.6bn) commitment from Saudi Arabia to expand the delivery of its advanced AI inference infrastructure.
The commitment was announced at the LEAP 2025 Tech event, scheduled from 09-12 February 2025 in Saudi Arabia.
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Groq, which is engaged in developing high-speed AI inference chips, was founded by an ex-Alphabet AI chip engineer.
The startup’s technology can execute commands from pre-trained models, optimising the speed of AI applications like chatbots and large language models.
Groq is expected to receive the latest funds throughout this year to expand its Dammam data centre in Saudi Arabia, reported Reuters.
The company’s ongoing collaboration with Aramco Digital, a subsidiary of the oil giant Aramco, has been instrumental in building a critical AI hub in the region.
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By GlobalDataFrom its data centre in Dammam, Groq supplies AI inference capabilities globally through GroqCloud AI inference technology.
In August 2024, Groq secured $640m in a funding round led by Blackrock, with participation from Neuberger Berman, Type One Ventures, Cisco, KDDI, and Samsung Catalyst Fund.
Initially expected to raise $300m, the funding round exceeded expectations and increased Groq’s valuation to $2.8bn.
At that time, Groq said the funds were intended for scaling its tokens-as-a-service offering, enhancing GroqCloud with new models, and expanding the team to support the development of more open AI models.
