How to Buy Groq Stock Before the IPO

Groq has positioned itself as the “NVIDIA killer”—an AI chip company promising inference speeds that make GPUs look slow. With a $2.8 billion valuation and backing from SoftBank and BlackRock, investor interest is surging. The short answer: retail investors cannot buy Groq stock. The company is private, has announced no IPO timeline, and secondary market access requires accredited investor status with $25,000+ minimums.

If you’re accredited, limited shares trade on platforms like Forge Global. If you’re not, your best exposure to the AI chip revolution comes through public competitors like NVIDIA and AMD—companies you can buy today for the price of a single share.

This guide breaks down exactly who can access Groq shares, through which platforms, at what cost—and what realistic alternatives exist for everyone else.

Quick Summary

What Is Groq?

Groq is an AI semiconductor company founded in 2016 by Jonathan Ross, one of the original architects of Google’s Tensor Processing Unit (TPU). Headquartered in Mountain View, California, Groq develops specialized chips called Language Processing Units (LPUs) designed specifically for AI inference—the process of running trained AI models to generate outputs.

The Technology Difference

While NVIDIA’s GPUs dominate AI training and inference, they weren’t originally designed for AI workloads. Groq’s LPU architecture was purpose-built for transformer models (the architecture behind ChatGPT, Claude, and most modern AI). The company claims:

• Deterministic latency: Sub-millisecond response times vs. variable GPU performance
• Lower power consumption: More efficient per inference operation
• Simplified deployment: Reduced software complexity compared to GPU clusters

These claims have attracted significant attention from developers frustrated with GPU costs and availability.

Funding History

Groq has raised substantial capital as AI infrastructure investment has exploded:

The 180% valuation jump from Series C to Series D reflects the AI infrastructure gold rush—but also raises questions about whether that valuation is justified by revenue.

Can You Buy Groq Stock?

The direct answer: No, not as a retail investor.

Groq is a private company. Its shares don’t trade on any public exchange. You cannot open a brokerage account and buy GROQ like you would NVDA or AMD.

For accredited investors, limited secondary market access exists—but with significant constraints:

• Minimum investments typically start at $25,000
• Liquidity is extremely limited—you may not be able to sell until an IPO
• Pricing is opaque—no real-time market price like public stocks
• Verification required—platforms must confirm your accredited status

For non-accredited investors, there is currently no legitimate way to buy Groq stock directly. Anyone claiming otherwise is likely running a scam.

Accredited Investor Requirements

The SEC defines accredited investors as individuals meeting at least one of these criteria:

Income Test

• $200,000+ annual income for the past two years (individual), OR
• $300,000+ combined income with spouse/partner
• Reasonable expectation of the same income this year

Net Worth Test

• $1 million+ net worth, excluding your primary residence

Professional Credentials

• Series 7, 65, or 82 securities licenses
• Certain other professional designations

Quick Check: About 13% of U.S. households qualify as accredited investors. If you don’t meet these thresholds, skip to the “Alternatives for Retail Investors” section—there are legitimate ways to get AI chip exposure without accreditation.

Verification Process

Secondary market platforms don’t take your word for it. Expect to provide:

• Tax returns (W-2s, 1099s) for income verification
• Brokerage statements for net worth verification
• Third-party verification letters from attorneys or CPAs
• Professional license documentation

The verification process typically takes 1-5 business days.

How to Invest in Groq (If Accredited)

Accredited investors can access Groq shares through secondary market platforms—marketplaces where existing shareholders (employees, early investors) sell their stakes to new buyers.

Secondary Market Platforms

Forge Global

Forge Global is currently the primary platform showing Groq availability.

• Current indicated price: ~$29.78 per share (subject to change)
• Minimum investment: Typically $25,000+
• Fees: 2-5% transaction fees
• Process: Submit interest, get matched with sellers, complete transaction
• Timeline: Transactions can take weeks to complete

Important caveat: The $29.78 price represents recent secondary trades, not a guaranteed price. Actual transaction prices depend on seller willingness and market conditions.

EquityZen

EquityZen aggregates smaller investments into larger blocks to meet seller minimums.

• Minimum investment: $10,000+
• Fees: 5-10% (higher than Forge due to aggregation)
• Groq availability: Limited and inconsistent
• Best for: Investors who can’t meet $25K+ minimums elsewhere

Hiive

Hiive operates as a marketplace connecting buyers and sellers.

• Minimum investment: $10,000+
• Fees: 2-5%
• Groq availability: Check platform directly—availability fluctuates

What to Expect

Secondary market investing differs fundamentally from public market investing:

1. No guaranteed execution: Unlike public stocks, there’s no market maker ensuring trades happen
2. Wide bid-ask spreads: Buyers and sellers may be far apart on price
3. Information asymmetry: Sellers (often employees) know more than you do
4. Transfer restrictions: Some shares have right of first refusal clauses or lock-up periods
5. Company approval: Groq may need to approve share transfers

The process typically works like this:

1. Create account and verify accredited status
2. Express interest in Groq shares
3. Platform matches you with potential sellers
4. Negotiate price (or accept listed price)
5. Complete legal documentation
6. Transfer funds and receive shares (often in a special purpose vehicle)

Alternatives for Retail Investors

You don’t need accreditation to invest in AI chip innovation. Here’s how to get exposure through public markets:

1. Direct Competitors

If you believe in Groq’s thesis—that AI inference is a massive market—these public companies are already competing:

NVIDIA (NVDA) dominates the AI chip market with 80%+ market share in data center AI. If Groq succeeds, it likely takes share from NVIDIA—but NVIDIA’s scale, software ecosystem (CUDA), and customer relationships create enormous competitive moats.

AMD (AMD) is NVIDIA’s closest competitor, gaining share in data center GPUs. Their MI300 series targets the same AI inference market Groq is pursuing.

2. Semiconductor ETFs

For broader exposure without picking individual winners:

VanEck Semiconductor ETF (SMH)

• Holds NVIDIA, AMD, Broadcom, and other chip leaders
• Expense ratio: 0.35%
• Captures overall semiconductor industry growth

iShares Semiconductor ETF (SOXX)

• Similar holdings to SMH with different weighting
• Expense ratio: 0.35%
• Highly liquid, easy to trade

Global X Robotics & AI ETF (BOTZ)

• Broader AI focus beyond just chips
• Includes companies deploying AI, not just building hardware
• Expense ratio: 0.68%

3. The “Wait for IPO” Strategy

Sometimes the best move is patience. Consider:

• IPO access: Some brokerages offer IPO allocation to customers
• First-day trading: You can buy shares immediately when they start trading
• Post-IPO volatility: Many tech IPOs drop 20-40% in the first year, offering better entry points

Groq has no announced IPO timeline. Speculation suggests 2026-2028 based on:

• Current funding runway ($640M raised provides years of operation)
• Market maturity requirements (needs to prove revenue at scale)
• Comparable company timelines (Palantir: 17 years private; Snowflake: 8 years)

Comparison: Groq Alternatives

Valuation Analysis

Groq’s $2.8 billion valuation deserves scrutiny:

The Bull Case

• AI inference market growing exponentially
• LPU technology offers genuine performance advantages
• SoftBank/BlackRock investment signals institutional confidence
• First-mover advantage in purpose-built inference chips

The Bear Case

• Revenue figures not publicly disclosed (likely modest)
• NVIDIA’s CUDA ecosystem creates massive switching costs
• Competing with a $3 trillion company with unlimited R&D budget
• Hardware startups have high failure rates (see: Cerebras struggles)
• Valuation based on potential, not proven revenue

Historical Context

AI chip valuations have been volatile. Consider recent examples:

• Cerebras: Filed for IPO in 2024 at lower-than-expected valuation after years of hype
• Graphcore: Once valued at $2.8B, struggled to compete with NVIDIA
• Habana Labs: Acquired by Intel for $2B, product adoption remained limited

The $2.8B valuation assumes Groq captures meaningful market share from NVIDIA—a thesis that remains unproven.

Risks of Investing in Groq Pre-IPO

Secondary market platforms make private stock accessible—but they don’t make it safe. Here’s what you’re actually signing up for:

Liquidity Risk: You Can’t Sell When You Want

Unlike public stocks, there’s no guaranteed buyer for your Groq shares. If you need to exit:

• You must find a buyer on the same platform (or another secondary market)
• Transaction times can take weeks or months
• You may have to accept significant discounts to attract buyers
• You cannot sell during company-imposed blackout periods

The reality: Treat any Groq investment as locked capital for 3-7 years.

Valuation Risk: The Price Is Whatever Someone Says

Groq’s $2.8 billion valuation comes from its Series D funding round—a negotiation between the company and sophisticated investors. That doesn’t mean:

• The valuation is “correct”
• The IPO will price at or above this level
• Your secondary market purchase at this valuation makes sense

Remember Instacart: valued at $39 billion in private markets in 2021, IPO’d at $9.9 billion in 2023. That’s a 75% haircut for anyone who bought near the peak.

Competition Risk: NVIDIA Isn’t Standing Still

NVIDIA has:

• $30+ billion annual R&D budget
• Dominant market share (80%+)
• Entrenched software ecosystem (CUDA)
• Relationships with every major cloud provider
• New inference-optimized chips launching continuously

Groq must convince customers to abandon proven NVIDIA solutions for unproven LPU technology. That’s a massive sales challenge.

Dilution Risk: Your Percentage Shrinks

Groq has raised multiple funding rounds and will likely raise more before profitability. Each round creates new shares, diluting existing shareholders. The $640M Series D wasn’t the last capital raise—it was likely one of several more to come.

Technology Risk: Unproven at Scale

Groq’s LPU technology shows impressive benchmarks, but:

• Limited production deployments at scale
• Manufacturing dependent on TSMC (same supply chain constraints as everyone)
• Software ecosystem far less mature than CUDA
• Real-world performance may differ from marketing claims

When Will Groq Go Public?

Official position: Groq has made no public statements about IPO timing.

Analyst speculation suggests 2026-2028 based on:

• Funding runway: $640M provides years of operation without IPO pressure
• Revenue maturity: Needs to demonstrate sustainable revenue growth
• Market conditions: AI sector IPO window may open or close
• Competitive position: Must prove differentiation before public scrutiny

Signs to Watch

An IPO may be approaching when you see:

• Executive team additions (CFO with public company experience)
• Auditor changes (Big Four accounting firm engagement)
• S-1 filing with SEC (required for IPO)
• Investment bank mandates announced
• Revenue milestones disclosed publicly

Comparable Timelines

Groq was founded in 2016. An IPO before 2026 would be relatively fast for the semiconductor industry.

The Bottom Line

Can you buy Groq stock? Not as a retail investor. Accredited investors can access limited shares through secondary markets like Forge Global, but expect $25,000+ minimums, limited liquidity, and significant risk.

Should you try? That depends on your situation:

• If you’re accredited and comfortable with illiquid, high-risk investments, secondary market access exists—but size your position assuming total loss is possible
• If you’re not accredited, your best AI chip exposure comes through public markets: NVIDIA, AMD, and semiconductor ETFs offer liquid, transparent alternatives
• If you’re patient, waiting for the IPO may offer better entry points with full liquidity and price transparency

The AI chip market is real. The opportunity is real. But the hype around any single private company—including Groq—should be tempered by the reality that most “NVIDIA killers” have failed to kill anything except investor capital.

Frequently Asked Questions

Can you buy Groq stock?

Not as a retail investor. Groq is a private company with no public stock. Accredited investors can access limited shares through secondary market platforms like Forge Global, typically requiring $25,000+ minimum investments and verified accredited status.

Is Groq publicly traded?

No. Groq remains a private company with no announced IPO timeline. The company has raised $640 million in its most recent funding round (Series D, August 2024) at a $2.8 billion valuation, but shares do not trade on any public exchange.

How much is Groq worth?

Groq’s most recent valuation was $2.8 billion, established during its August 2024 Series D funding round led by SoftBank Vision Fund 2. Secondary market prices on platforms like Forge Global have shown shares trading around $29.78, though prices fluctuate based on supply and demand.

When will Groq IPO?

Groq has made no official IPO announcement. Based on funding runway, market conditions, and comparable company timelines, analysts speculate a potential IPO window of 2026-2028. The company may remain private longer if it continues raising private capital successfully.

How can retail investors get AI chip exposure?

Retail investors can buy public AI chip companies directly: NVIDIA (NVDA), AMD (AMD), Intel (INTC), and Broadcom (AVGO). Semiconductor ETFs like VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) offer diversified exposure to the sector without picking individual winners.

What is Groq’s LPU technology?

LPU (Language Processing Unit) is Groq’s proprietary chip architecture designed specifically for AI inference workloads. Unlike GPUs (originally designed for graphics), LPUs are purpose-built for running transformer models with claims of deterministic sub-millisecond latency and lower power consumption per inference operation.

Sources

• Bloomberg: “AI Chip Startup Groq Raises $640 Million at $2.8 Billion Valuation” (August 2024)
• SEC: Accredited Investor Definition, Rule 501 of Regulation D
• Forge Global: Secondary market platform and pricing data
• CNBC: “Instacart IPO Prices at $10 Billion” (September 2023)
• Groq Company Website: Technology and company information
• Yahoo Finance: Public competitor pricing (NVDA, AMD, INTC, AVGO)