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“We are no longer selling hardware” was Groq CEO Jonathan Ross’s explanation for a change in strategy in an EE Times interview published April 5, 2024. Groq had found that selling chips directly meant high minimum orders, substantial upfront expense, and risk for buyers. Its alternative was to offer access through GroqCloud and work with partners on larger data-center deployments. That statement describes Groq’s 2024 approach—not its entire current business: later announcements point to a cloud-focused company that operates infrastructure and uses Nvidia systems.
Why did Groq stop selling hardware to ordinary customers?
Ross said a startup selling chips faced a mismatch between how the product had to be bought and what many customers wanted. A sale required a large minimum purchase, making the initial expense high; customers also had to accept the risk of buying substantial quantities of a product from a young supplier. As Ross put it in the April 2024 interview, “Long term, we always wanted to go there, but the realization was, you cannot sell chips as a startup, it’s just too hard.”
Groq had originally expected to sell hardware as well as provide cloud access. Ross said the company already had developer traction on GroqCloud, so it could serve those users without asking them to buy chips. For larger installations, Groq described working through partners on data-center deployments. At the time, Ross said the U.S. government and its allies were the only customers to whom Groq would consider selling hardware.
The interview reported 70,000 registered developers and 19,000 applications running in 2024. Those are historical figures from that interview, not current measures of Groq’s user base.
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What changed after the 2024 decision?
Groq’s later announcements show the cloud strategy developing through partnerships, a technology license, and a larger infrastructure plan. They do not mean Groq simply resumed selling LPUs to ordinary customers.
April 2025: inference for Meta’s Llama API
In April 2025, Groq announced a partnership with Meta to provide inference for the official Llama API, with Llama 4 API access accelerated by Groq coming in preview. Groq claimed throughput of up to 625 tokens per second and said more than 1.4 million developers were using its service at the time. These were company-reported figures in a partnership announcement, not an independent performance benchmark or a current developer count.
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December 2025: a non-exclusive Nvidia technology license
On December 24, 2025, Groq announced a non-exclusive license of its inference technology to Nvidia. Groq said it would remain independent, GroqCloud would continue without interruption, and Simon Edwards would become CEO. Founder Jonathan Ross, President Sunny Madra, and other team members would join Nvidia to help advance and scale the licensed technology. The announcement describes a licensing agreement and personnel transition—not an acquisition of Groq.
June 2026: a larger operated inference cloud
Groq’s June 22, 2026 announcement said it had raised $650 million to expand its inference cloud. The company reported operating 13 data centers across North America, Europe, the Middle East, and Asia-Pacific; serving more than five million developers; and processing trillions of tokens each week. It said the funding would accelerate infrastructure fit-out, including a new Nvidia LPX system, and set a plan to scale toward 200 MW by the end of 2027. These are company-reported operating figures and a forward-looking capacity target, not independently verified measurements.
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The June announcement named Adam Winter as CEO and Matt Eng as CFO, following the December 2025 announcement naming Simon Edwards as incoming CEO. The company statements establish that the leadership details changed between announcements, but do not explain the timing or circumstances.
August 2026: financing and open business questions
TechCrunch reported on August 17, 2026, that Groq had raised a further $350 million at a reported $3.5 billion valuation and was shifting from an AI chipmaker toward a “neocloud” provider operating Nvidia systems. The report put the developer count above six million—different from Groq’s June figure of more than five million, with no reconciliation given in the cited accounts. Groq’s financials remain private, so the reported financing and valuation do not establish profitability.
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TechCrunch also raised questions about the demands of capital expenditure, debt, hardware depreciation, and converting growth into free cash flow. Those are reported investor concerns, not proof that Groq has incurred a particular level of debt or failed to generate cash.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does “no longer sell hardware” mean for customers?
Ross’s 2024 statement was about Groq’s route to market: developers could use cloud inference rather than make a large upfront hardware purchase, while large deployments could involve partners. Groq’s later public updates center on operating inference infrastructure, including Nvidia systems, rather than ordinary direct LPU sales. The cited announcements do not establish that Groq LPUs are now generally available for purchase by individual developers or businesses.
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For a developer, the practical question is therefore access to inference through a service, not how to order an LPU. For an organization planning a large deployment, the 2024 interview described a partner-led path; the newer cloud announcements describe Groq operating and expanding infrastructure itself. These are different arrangements, with different buyers bearing the upfront hardware and operating burden.
What the growth figures do—and do not—show
Groq’s announcements document a stated expansion in cloud scale: its June 2026 release reported 13 data centers, more than five million developers, and trillions of tokens processed weekly, alongside a target of 200 MW by the end of 2027. TechCrunch later reported more than six million developers in August. The figures are tied to different dates and sources, and the available accounts do not independently validate them or explain the count difference.
Scale alone does not settle whether the model will be profitable. Operating data centers and incorporating Nvidia systems can support a cloud business, but also make financing, depreciation, and utilization important. With financials private, the cited reporting leaves those questions open.
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