Axios just dropped a bizarre scoop. Groq, the AI chip company company that was acquired by Nvidia in December of last year, is raising $650M . How, exactly, is a company that successfully exited raising more capital? Well, technically, Nvidia did not acquire Groq . They licensed Groq’s technology and hired Groq’s key technical executives , but did not acquire the Groq corporate entity. That corporate entity continued to operate, focusing on maintaining Groq’s datacenters and their inference API . That API focuses on offering extremely fast inference on smaller models; their largest supported model is GPT OSS 120B , which is likely at least 10x smaller than frontier models like GPT-5.5 or Claude Mythos. This is a technical limitation of Groq’s architecture; without large amounts of high-bandwidth memory (HBM) in each chip package, the total cost to build and maintain a Groq cluster capable of serving a frontier model would be massive.…