How to Invest in Groq Stock in 2024

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Groq is an innovative artificial intelligence (AI) chip startup that specializes in designing chips for AI inference, a process where machine learning models draw conclusions from new data. Founded by Jonathan Ross, a former Google executive who helped develop the tensor processing unit, Groq aims to revolutionize the AI chip market with its high-speed, efficient processing capabilities. The company’s chips are known for their ability to serve large language models like Meta’s LLaMA 3 at impressive speeds, making them a key player in the AI inference submarket.

How to Buy Groq Stock

Groq is currently a private company, meaning it does not trade on public stock exchanges and lacks a stock symbol. However, accredited investors can purchase shares through Hiive, a secondary marketplace that facilitates investments in private companies.

Accreditation Requirements

To qualify as an accredited investor, you must meet one of the following criteria:

  • An individual annual income of $200,000 or a joint income of $300,000.
  • A net worth exceeding $1,000,000, excluding the primary residence.
  • Status as a qualifying financial professional.

On Hiive, investors can browse listings of Groq stock, negotiate prices, or accept asking prices set by sellers, who may be current or former employees, venture capitalists, or angel investors.

Can Retail Investors Buy Groq Stock?

Retail investors cannot currently purchase Groq stock while the company remains private. However, they can gain indirect exposure by investing in Samsung (SSNLF), which has been chosen by Groq to design and manufacture its chips. Despite this partnership, Samsung’s large market capitalization means that its contract with Groq is relatively small, so direct investment in Groq upon its IPO might be more impactful for those interested in the company.

Groq’s Growth and Market Position

Groq is at the forefront of the AI inference chip market, which is expected to grow significantly over the next decade. The company has deployed around 4,500 chips and plans to produce an additional 1.5 million by the end of 2025. Groq’s chips are designed to be less complex, allowing for faster and more efficient processing, which is crucial for the rapid advancements in AI technology.

Funding and Valuation

In August 2024, Groq raised $640 million in a Series D funding round led by Cisco Investments and Samsung Catalyst Fund, valuing the company at $2.8 billion. This funding will support Groq’s research and development efforts and expand its manufacturing capabilities to meet the growing demand for AI inference chips.

Founders and Company Background

Groq was founded in 2016 by Jonathan Ross, who previously worked at Google on the development of AI-specific chips. His experience and vision have been instrumental in positioning Groq as a leader in the AI chip industry.

FAQs About Investing in Groq

What is Groq?
Groq is an AI chip startup that designs high-speed chips specifically for AI inference, enabling faster and more efficient processing of machine learning models.How can I invest in Groq before it goes public?
Accredited investors can purchase shares through Hiive, a platform for private company investments.When is Groq expected to go public?
Groq has not announced a specific timeline for an IPO, but it is likely to happen after the company further develops its technology and market presence, potentially by 2025 or 2026.What are the risks of investing in private companies like Groq?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.Who are the major investors in Groq?
Major investors include Cisco Investments, Samsung Catalyst Fund, BlackRock, D1 Capital Partners, Tiger Global, and Addition Capital.

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