W.047Groq is asking investors for an $8B valuation, 2.3 times its August price, as listed neoclouds fell about a fifth. Spread over the capacity it expects in 2027, that is about $40M a megawatt

The round

Groq wants to raise at more than twice its August price. Davis, who runs the investment firm Disruptive and chairs Groq, approached investors about a Series B at $8B, not counting the money raised, Bloomberg reported, citing investor documents. The size of the round was not reported. In August Groq raised $350M in a Series A led by Disruptive at $3.15B before the money, or $3.5B after it. Groq and Disruptive declined to comment.

Davis pitches Groq against borrowers. His letter argues Groq can grow margins without heavy debt and describes rivals as “industry facilitators with massive unmet obligations,” Briefs.co reported. The new money would meet demand through short- and medium-term contracts. The letter projects revenue rising eightfold next year and EBITDA reaching $2B by 2028. Neither figure comes with a current revenue number, so the round’s price cannot be set against sales.

This is a different company from the one valued at $6.9B in 2025. In December 2025 Nvidia took a non-exclusive licence to Groq’s inference technology and hired founder Jonathan Ross, president Sunny Madra and other staff; CNBC reported the deal at about $20B, and the companies gave no figure. Groq paid its shareholders about $7.6B, Investing.com reported in June, and continued as an independent company running GroqCloud, which rents inference capacity. Groq says the August price was a new valuation for that business, not a down round.

Against the listed neoclouds

Public investors marked the same business down. Six listed neocloud operators fell an average 20.9% from October 30 to November 5, against -3% for the S&P 500, FourWeekMBA calculated; Bloomberg tied the selloff to concern over heavy borrowing and possible pushback on data centers after the midterms. CoreWeave was at $45.89 on November 6, -16% from October 30, a market value of about $25.3B. It owed $35.6B of debt principal at the end of June.

Only at its 2027 capacity does Groq’s price per megawatt come down to CoreWeave’s. At $8B, Groq is valued at about $40M for each of the more than 200 MW it expects to run in 2027, and about $148M for each of the 54 MW it ran in August. CoreWeave’s market value plus its debt principal comes to about $41M per megawatt of the 1.5 GW it had active at the end of June; its shares alone, about $17M. On the capacity Groq ran in August, its asking price per megawatt is 3.7 times CoreWeave’s shares and debt together; and $8B is before new money, so the post-money figures would be higher. Groq’s figures may count power on a different basis, and neither company’s debt is netted against cash here.