Groq Is Said to Reach Out to Potential Bidders for Cloud Unit

Groq has begun reaching out to potential suitors for the sale of GroqCloud, people familiar with the matter said, seeking a buyer for a unit worth more than $1 billion.

The artificial-intelligence chip startup is working with a financial adviser to gauge interest in the unit, which provides a subscription-based platform that allows software developers to rent time on Groq’s specialized AI hardware, according to the people.

Groq is targeting companies looking to bulk up their AI capabilities, including closely held makers of large language models and publicly traded semiconductor players, the people said, asking not to be identified because ...