AI Chip Startup Groq Raises $750 Million at $6.9 Billion Valuation

Artificial intelligence chip startup Groq Inc. raised $750 million at a post-funding valuation of $6.9 billion, highlighting investor interest in companies seeking to alleviate a shortage of chips and computing power for AI workloads.

The round was led by Disruptive, with “significant investment” from Blackrock Inc., Neuberger Berman Group LLC and Deutsche Telekom Capital Partners, as well as existing investors including Samsung Electronics Co., Cisco Systems Inc., D1 and Altimeter. Participants also included a “large US-based West Coast mutual fund,” Groq said in a statement.

The company will use the funds to expand its data-center capacity, including new locations ...