Plausibly, take all the Nvidia hype and multiply that by a factor and that's what 'Groq' could be worth.
And there is no real commodification - there's Nvidia, Cerebras, Groq ... not many otheres.
“Existing shareholders will receive the remaining cash distributions and then have the opportunity to invest into a new company”
New company? But Groq still exists and continued to exist.
“The bottom line: Don't be surprised if this becomes a new transaction template in the AI private markets.”
A transaction template? I don’t follow what was novel about this situation. The Meta not-acquisition-acquisition of Scale seems more novel.
I guess I feel like Zach’s confusion is because of the way Axios has presented what is happening to Groq. Looking at why actually happened with Groq, it seems like Axios are reporting it weird.
Unless Groq really is starting a new company in which case I am equally as confused.
edit: when announced last year it was announced as an asset acquisition https://www.cnbc.com/2025/12/24/nvidia-buying-ai-chip-startu...
Rather, the interesting thing and the topic of most of the article is "how, after Nvidia hired most of Groq's team and licensed all their IP, did Groq manage to convince investors to invest in the remaining corporate entity?"
“One could argue that Groq’s datacenters alone could make them worth billions of dollars.”
Groq is a successful datacenter business with a high-revenue cloud product. That’s a compelling investment in its own right, right?
ai_fry_ur_brain•55m ago
dang•48m ago
ai_fry_ur_brain•39m ago
appplication•31m ago
If you want nuance, the obvious answer to this is that the rules that apply at our level do not apply to them. Raising money is an inevitability and does not require any fundamental basis other than the name behind it.
pezezin•46m ago