Key facts
- Groq has raised $650 million in new funding.
- Nvidia licensed Groq's LPU technology and hired key personnel six months ago.
- Groq is pivoting its cloud business and hiring new executives.
- AI startup Reflection signed a deal with SpaceX for computing capacity.
- Reflection's deal with SpaceX begins July 1, 2026.
- Reflection will pay SpaceX $150 million per month through 2029.
- Reflection's deal involves Nvidia GB300 AI chips.
- Qualcomm is nearing a $4 billion deal to acquire AI chip startup Modular Inc.
- Modular Inc.'s valuation increased significantly in nine months.
- Qualcomm aims to diversify revenue streams beyond the smartphone market.
- Upscale AI extended its early-stage funding round by $190 million.
- Upscale AI is valued at $2 billion after the funding extension.
AI chipmaker Groq has announced a significant funding round, securing $650 million. This development follows a licensing deal with Nvidia approximately six months ago, where Nvidia licensed Groq's LPU technology and hired key personnel from the company. Groq is now pivoting its cloud business strategy and is in the process of hiring new executives to manage its operations amid heightened competition in the AI sector.
In a separate development, AI startup Reflection has entered into an agreement with SpaceX for access to computing capacity. The deal, set to commence on July 1, 2026, will see Reflection utilize SpaceX's Colossus 2 data center. Under the terms of the agreement, Reflection will pay SpaceX $150 million per month until 2029, specifically for Nvidia GB300 AI chips.
Meanwhile, Qualcomm is reportedly in advanced negotiations to acquire AI chip startup Modular Inc. The potential acquisition is valued at approximately $4 billion, representing a substantial increase from Modular's valuation nine months ago. This strategic move by Qualcomm aims to broaden its revenue sources, moving beyond the fluctuating smartphone market.
Furthermore, Upscale AI, a company focused on AI networking infrastructure, has successfully extended its early-stage funding round. The extension brought in an additional $190 million, bringing the company's valuation to $2 billion. The funding round was spearheaded by Premji Invest and saw participation from new investors, including Nvidia and Salesforce Ventures.