Artificial intelligence semiconductor startup Groq has begun the process of reaching out to prospective buyers of its cloud unit, Bloomberg reported.
The company is working with a financial adviser to sell GroqCloud and could get as much as $1B or more for the unit, the news outlet added, citing people familiar with eh matter. GroqCloud sells subscriptions that provide the opportunity to developers to rent time on the company’s AI hardware.
Among the potential buyers include companies that are looking to boost their AI capabilities, such as large language models and public semiconductor companies, the news outlet added, citing its sources.
Groq did not immediately respond to a request for comment from Seeking Alpha.
Nvidia (NVDA) announced in late December that it entered into a non-exclusive licensing agreement with Groq, worth some $20B, for its inference technology. As part of the agreement, Groq’s Founder Jonathan Ross, President Sunny Madra and other members of the Groq team, joined Nvidia.
