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Saudi Arabia Invests $1.5 Billion in AI Hardware Leader Groq: Major Funding Boost for Emerging Tech Giant

Groq, operating from its cutting-edge data center in Dammam, Saudi Arabia, now provides world-class AI inference through GroqCloud

Groq

Groq has secured a $1.5 billion commitment from the Kingdom of Saudi Arabia for expanded delivery of its advanced LPU-based AI inference infrastructure.

In a groundbreaking move poised to reshape the future of AI computing, Groq, a rising star in the world of artificial intelligence (AI) hardware, has secured a monumental $1.5 billion commitment from the Kingdom of Saudi Arabia (KSA) to expand its cutting-edge LPU-based AI inference infrastructure. Unveiled at LEAP 2025, this landmark agreement cements Saudi Arabia’s position as a global powerhouse in AI technology, fueling the region’s explosive demand for advanced computing solutions. With this bold investment, the Kingdom is not just embracing the AI revolution—it is leading it.

Groq, operating from its cutting-edge data center in Dammam, Saudi Arabia, now provides world-class AI inference through GroqCloud™. At LEAP 2025, Groq CEO and Founder, Jonathan Ross, joined by Tareq Almin and Saudi Aramco CTO, Ahmad O. Al-Khowaiter, showcased live demonstrations of reasoning LLMs, the Saudi-developed Allam model, and English and Arabic text-to-speech capabilities. The substantial $1.5 billion investment in Groq’s AI infrastructure marks a pivotal step towards achieving Saudi Arabia’s Vision 2030 goal of a thriving AI-driven economy, benefiting both Groq and the Kingdom.

Groq’s main weapon in this potential AI arms race is the Groq LPU (Language Processing Unit). This isn’t your average processor; it’s a custom-designed AI accelerator specifically built for tasks like natural language processing, image classification, and other machine learning applications. Groq also provides software and tools to streamline the use of their hardware.

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Groq claims their LPU offers significant advantages over traditional processors for AI tasks. Their focus on building hardware specifically designed for AI sets them apart from companies that rely on more general-purpose processors, potentially leading to superior speed and efficiency.

Groq AI was founded in 2016 by Jonathan Ross, who previously leveraged his expertise on Google’s TPU (Tensor Processing Unit) project. This experience fueled his vision for Groq, a company dedicated to developing high-performance hardware specifically designed to meet the demands of AI applications.

Beyond the LPU, Groq is making waves with GroqCloud, their development platform. This platform recently introduced Whisper Large V3, a state-of-the-art speech recognition and translation model. Trained on a massive dataset of labeled audio, Whisper Large V3 offers developers exceptional accuracy and speed for building next-generation voice experiences.

“It’s an honor for Groq to be supporting the Kingdom’s 2030 vision,” said Jonathan Ross, CEO and Founder of Groq. “We are excited to work alongside Saudi innovators to shape the next chapter of AI.”

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