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Groq

Blurb: Groq is positioned as a potential disruptor in the AI hardware market, challenging industry titan Nvidia.

Groq has garnered attention with its groundbreaking LPU (Language Processing Unit), boasting performance metrics that outpace Nvidia GPUs by over 4x in speed and at just 1/5th of the cost, delivering an unparalleled 20x improvement in price/performance ratio. This advantage is poised to expand with the imminent release of Groq's next-generation chip and the projected growth of AI models.

Highlights:

• Groq's LPU sets the benchmark for high-speed inference, addressing the burgeoning demand in the $1.1 trillion AI market. Independent benchmarks have underscored Groq's superiority, necessitating extensions to plot its performance on industry charts.

• In the AI landscape, real-time inference is indispensable post-training, with inference speed being a critical factor for widespread adoption. GroqCloud, launched in March 2024, has already gained traction, serving over 170,000 developers and facilitating the deployment of over 19,000 new applications.

• Groq's trajectory indicates the deployment of OpenAI's token equivalent per second within the next twelve months. Strategic partnerships with entities like Saudi Aramco and Norway's EWP position Groq for substantial revenue growth, potentially surpassing its current valuation by 2025.

• Groq is poised to disrupt the $54 billion global AI hardware market, set to expand exponentially to $474 billion over the next decade. With the bulk of resources allocated to inference in mature AI models, Groq has access to a significant portion of the market.

• Unlike its competitors, which rely heavily on TSMC for manufacturing, Groq’s chips flaunt a 100% American pedigree, fabricated at GlobalFoundries at 14 nanometers—a mature technology that ensures robustness and affordability.

• Led by founder and CEO Jonathan Ross, known for inventing Google's Tensor Processing Unit, Groq boasts a formidable team focused on high-speed, low-cost inference. Anticipated advancements in Groq's next-generation chip are set to widen its lead over competitors like Nvidia.

Deal Stage: Series D, preferred shares
Valuation: $2.38B ($24.95/share)
Minimum Ticket: $5,000
Fees: 7% transaction fee + 20% carry
Deadlines: Commitment before 19th June 2024, wires before 21st June 2024

This will be considered a soft commitment. Upon submission, your details will be forwarded to the fund managers overseeing the deal. They will then provide you with the pitch deck, investment memo, deal sheet, and all necessary information for you to research this opportunity thoroughly. Once you are satisfied, you can submit your hard commitment directly to the fund managers, who will then secure your participation in the deal.

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