Nvidia-backed artificial intelligence infrastructure company Groq is seeking a Series B financing round at an $8 billion valuation, excluding the new capital raised, Bloomberg reported, citing investor documents. Executive Chairman Alex Davis has approached investors after an August round valued the company at $3.15 billion before a $350 million investment. The proposed valuation therefore represents more than a doubling in three months, despite selling pressure on publicly traded data center operators. Groq previously developed specialized AI chips to compete with Nvidia but shifted toward operating data centers that provide computing capacity for AI inference (running trained models to produce outputs). The transition followed a $20 billion licensing agreement with Nvidia late last year, under which Nvidia recruited Groq founder and former Chief Executive Jonathan Ross and other employees. Groq’s remaining business focuses on inference computing services, particularly for cybersecurity applications. Davis told investors that Groq can expand profit margins without taking on substantial leverage, contrasting its model with rival operators that rely heavily on debt. The proposed financing would support demand through short- and medium-term customer contracts. Davis expects revenue to rise eightfold next year and EBITDA (earnings before interest, taxes, depreciation and amortization) to reach $2 billion by 2028. The fundraising comes as competition intensifies among AI infrastructure providers and investors examine the profitability of large-scale computing investments. CoreWeave and Nebius shares have faced selling pressure over borrowing concerns and potential regulatory resistance to data center development following the U.S. midterm elections. Groq and Davis’s investment firm, Disruptive, declined to comment.