Groq is an American AI chip company founded in 2016 that designs high-performance inference accelerators. The company pioneered the Language Processing Unit (LPU), a purpose-built chip for AI inference that uses on-chip SRAM as primary storage, eliminating memory bottlenecks and delivering deterministic, ultra-low-latency processing for large language models and other AI workloads.
On December 26, 2025, Nvidia announced the acquisition of Groq's assets for approximately $20 billion in cash, marking Nvidia's largest deal on record (CNBC). The transaction valued Groq at approximately 2.9x its most recent $6.9 billion private valuation from September 2025. Nvidia acquired Groq's LPU technology and key talent to integrate low-latency inference capabilities into its AI factory architecture (The Next Platform).
From July 2022 to October 2024, Equitybee facilitated the funding of stock option packages for Groq employees at entry prices starting as low as $2.09 per share. Approximately 31 months after the median funding date, Groq was acquired by Nvidia for $20 billion, delivering positive returns to all investors via Equitybee.
Groq's $20 billion acquisition at $48 per share generated strong returns for Equitybee investors. Equitybee investors achieved a median net IRR of 137.61% with approximately 31 months to liquidity, outperforming the estimated returns of all comparable VC funding rounds.
We estimate that Series D investors (Cisco, Samsung, BlackRock), who invested at $16.08 per share in August 2024, achieved an estimated net IRR of approximately 119.41% over roughly 17 months. Series C investors (Tiger Global, D1 Capital) at $11.54 per share earned an estimated 35.39% IRR, and Series B investors (Social Capital, Ascolta, NJF Capital) at $6.76 per share earned an estimated 31.70% IRR.
Equitybee investors entered at a median price of $2.51 per share, a 84% discount to the Series D price, and realized the highest annualized return of any comparable entry point.
*Past performance is not indicative of future results.
*Equitybee Investors figures represent the median Equitybee investor,
Past performance is not indicative of future results.
Notably, the median net IRR for Equitybee offers on Groq was 137.61%.
The key differentiator for Equitybee investors was the combination of a low entry price and a moderate holding period. Series D investors (Cisco, Samsung, BlackRock), who entered at $16.08 per share, had the shortest hold period (approximately 17 months) and achieved an estimated IRR of 119.41%, but their higher entry price limited their MOIC to 3.0x. Series B investors (Social Capital, Ascolta) entered at $6.76 per share but waited over 7 years (86.6 months), diluting their annualized return to an estimated 31.70%. Equitybee investors achieved the highest IRR by entering at $2.51 per share with approximately 31 months to liquidity, generating a 7.41x MOIC.
Methodology: Our estimates for venture round investors are based on: (1) the preferred share prices paid in each round (as outlined in the Timeline of Events), (2) a settlement price of $48.00 per share from the Nvidia acquisition, and (3) the time between each round date (per Pitchbook) and the distribution date. These estimates assume venture investors received $48 per share. Actual VC fund returns may differ.
*Internal Rate of Return, net of fees
**Multiple on Invested Capital
Past performance is not indicative of future results. 137.61% IRR represents the median IRR experienced by investors who utilized Equitybee to fund employee stock options in Groq. Net IRR is shown net of all applicable fees. IRR figures are calculated for each offer on the Equitybee platform from the date the investor's funds were transferred to the employee (funded date) through the distribution date of proceeds. If the distribution date was less than one year after the funded date, the IRR represents an unannualized return. For distributions one year or more after the funded date, IRR is annualized.
Preferred Share Price: $0.97
Lead Investors: Social Capital
Funding: $10.27M at $30.27M valuation
Preferred Share Price: $6.76
Lead Investors: Social Capital, Ascolta, NJF Capital
Funding: $52.28M at $312.28M valuation
Preferred Share Price: $11.54
Lead Investors: Tiger Global, D1 Capital
Funding: $300M at $1.1B valuation
Offer Price: $2.09 per share
87% discount vs. Series C ($11.54)
Funding: $100M at $1.15B valuation
Preferred Share Price: $16.08
Lead Investors: Cisco, Samsung, BlackRock
Funding: $640M at $2.8B valuation
Offer Price: $2.93 per share
82% discount vs. Series D ($16.08)
Funding: $1.5B
Valuation reaches $6.9B
$20B all-cash deal announced
Distribution Price: $48.00 per share
Distribution Date: March 25, 2026
Settlement price based on Nvidia acquisition terms. Equitybee is not affiliated or associated with, or endorsed by, any of the companies mentioned herein. Equitybee executes private financing contracts (PFCs), private placements which are speculative, illiquid, contain substantial risk and may result in the complete loss of capital to the investor. These risks may be greater during extreme market conditions. PFCs do not grant or transfer ownership of startup company stock. When a liquidity event occurs at a price per share less than the investment price per share, Investors will first receive all available funds to recoup the original investment amount. The employee will not receive any proceeds in this event. A private offering of interests will only be made pursuant to a confidential private placement memorandum, an operating agreement, and other subscription documents ("Other Documents"), which will only be furnished to qualified investors on a confidential basis at their request for their consideration in connection with such offering. For accredited investors only. Securities offered through EquityBee Securities, LLC, member FINRA.
Sources
Nvidia buying AI chip startup Groq's assets for about $20 billion - CNBC
Nvidia Finally Admits Why It Shelled Out $20 Billion For Groq - The Next Platform
Nvidia's $20B Groq Acquisition Just Paid Off - The Motley Fool
Fundraising round data - Pitchbook, Inc.
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