Saudi Arabia backs Groq with $1.5bn to strengthen AI infrastructure

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GHADA.ISMAIL
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Feb 13, 2025
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Riyadh – Sharikat Mubasher: U.S. semiconductor startup Groq announced on Monday a $1.5 billion investment commitment from Saudi Arabia to expand the delivery of its advanced AI chips in the region.

Founded by a former Alphabet AI chip engineer, Groq specializes in AI inference chips designed for high-speed performance and efficient execution of pre-trained models. The startup already collaborates with Aramco Digital, the technology arm of Aramco, with the two companies establishing a key AI hub in Saudi Arabia last December.

According to Reuters, Groq revealed plans to use the funds to expand its data center in Dammam this year. While its chips are subject to U.S. export controls, the company confirmed it has secured the necessary licenses for shipping.

The announcement was made at Saudi Arabia’s LEAP 2025 event, where $14.9 billion in new AI investments were unveiled.


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