In a significant development within the technology sector, semiconductor startup Groq has announced a $1.5 billion commitment from Saudi Arabia. This substantial investment aims to enhance the delivery of Groq’s advanced artificial intelligence (AI) chips within the Kingdom.
Saudi Arabia committed $1.5 billion toward Groq AI infrastructure, representing a defining moment for both Groq and the Kingdom to deliver on the Vision 2030 goal of an AI-powered economy in Saudi Arabia. More here: https://t.co/aNaDBahN0D
Founded by a former Alphabet engineer, Groq specialises in producing AI inference chips. These chips are designed to optimise speed and execute commands of pre-trained models, making them integral to various AI applications.
Simple lesson that is easy to say but impossibly hard to live by: if you believe in what you’re doing, never, ever give up.
It took us 8+ years to get to this moment.
The race to build AI inference all around the world starts now for @GroqInc.
Groq has an existing agreement with Aramco Digital, the technology subsidiary of oil major Aramco. In December 2024, the two companies collaborated to establish a critical AI hub in the region. This partnership underscores Saudi Arabia’s commitment to advancing its digital infrastructure and AI capabilities.
Announcement at LEAP 2025
The $1.5 billion commitment was announced during Saudi Arabia’s global technology event, LEAP 2025. While specific details regarding the timeline or location of the investment were not disclosed, this move is part of a broader strategy. At the same event, Saudi Arabia secured a total of $14.9 billion in new AI investments, highlighting its ambition to become a leader in the field.
We built the region’s largest inference cluster in Saudi Arabia in 51 days and we just announced a $1.5B agreement for Groq to expand our advanced LPU-based AI inference infrastructure.
In August 2024, Groq achieved a valuation of $2.8 billion after raising $640 million in a funding round. Prominent investors, including Cisco Investments, Samsung Catalyst Fund, and BlackRock Private Equity Partners led this round. The recent commitment from Saudi Arabia further bolsters Groq’s financial standing and its capacity to innovate in the AI chip market.
Saudi Arabia’s Vision 2030 and AI Ambitions
Under the guidance of Crown Prince Mohammed bin Salman, Saudi Arabia is actively pursuing its ambitions to become a leader in artificial intelligence. The country’s efforts include hosting high-profile AI events and securing significant deals, such as the partnership with Groq. These initiatives are aligned with Vision 2030, a programme aimed at diversifying the oil-dependent economy and positioning AI as a crucial industry for the country’s future economic landscape beyond oil.
The $1.5 billion investment in Groq signifies a strategic move by Saudi Arabia to enhance its AI infrastructure and capabilities. This partnership accelerates Groq’s expansion plans and aligns with the Kingdom’s Vision 2030 objectives, underscoring a mutual commitment to innovation and technological advancement.
