Groq AI, a startup based in Mountain View, California, is poised to raise hundreds of millions of dollars in a new funding round, in a bid to compete with AI chip supplier Nvidia. The firm is looking to secure $300 million in a Series D preferred stock round, with a post-money valuation of $2. 5 billion, according to a document obtained by The Post. BlackRock is set to serve as the lead investor, with participation from Social Capital, Tiger Global, and D1 Capital. Groq has hired Morgan Stanley to assist with the fundraising effort, and the round is expected to be finalized in early July.

Despite initial reports on BlackRock's involvement and the anticipated post-money valuation, both Groq and BlackRock declined to comment on the funding. Previously, Groq raised approximately $367 million from external investors and closed a funding round in 2021 at a $1. 1 billion valuation. The startup, founded in 2016 by Jonathan Ross, a former Google hardware executive, creates chips and software specifically designed for generative AI products. Groq claims that its chips are faster and more cost-effective than traditional hardware.