How the hell is Groq raising more money?

Groq, an AI chip company whose technology was licensed (but not fully acquired) by Nvidia in 2024, is raising $650 million despite the partial exit. The remaining Groq entity retained its datacenter operations and infrastructure—four functional AI datacenters with experienced operators—which represents significant strategic value as datacenter construction has become a major bottleneck for the AI industry. However, Groq faces challenges including aging LPUv1 chip technology and competition from Nvidia's newer LPUv3 chips sold to other providers, which has eroded its technical differentiation.