Ross: Partners fund Groq's CapEx until target IRR is achieved
Jonathan Ross · Jonathan Ross, Founder & CEO @ Groq: NVIDIA vs Groq - The Future of Training vs Inference | E1260 · 20VC with Harry Stebbings · Feb 17, 2025 · at 31:43
Jonathan Ross is Founder and CEO of Groq. He explains Groq's capital-light deployment model where external partners fund hardware CapEx in exchange for structured revenue splits.
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“So the deals that we do the partner will off, because we don't deploy, we don't spend money for our own capex. The partner will put up the money for us to deploy. We pay back with a, you know, decent IRR, and, but we split, and most of it goes to the partner, and then once we hit the IRR, it flips the other way. So others are putting the capex up for us.”
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