Nvidia's AI Chip Rival Groq Launches First European Data Center

Groq, a U.S.-based startup specializing in AI chips, has launched its first European data center in Helsinki, Finland as part of the company's international expansion and goal to meet the rising demand for AI services across Europe. 

The Details: Groq's new Helsinki location was developed in partnership with Equinix, a major global data center provider.

Read Next: Meta’s Growth Sizzles, But Wait For A Pullback Before Buying In

Finland was chosen due to factors that make it ideal for large-scale data centers, including reliable energy infrastructure, abundance of renewable energy and a cool climate. according to CNBC. 

The decision to build the Helsinki data center was made just four weeks before its launch, highlighting Groq's ability to move quickly. The company expects to start serving customers almost immediately. 

Why It Matters: Groq, which is valued at $2.8 billion and backed by investors such as Samsung and Cisco, is positioning itself as a challenger to established players like NVIDIA Corp. NVDA in the AI inference market. 

Groq specializes in inferencing, which is the process of running live data through pre-trained AI models. Inferencing is less demanding than training new AI models—a process that usually relies on Nvidia's GPUs due to its high computational requirements.

Unlike other competitors, Groq's chips do not rely on expensive, hard-to-source components like high-bandwidth memory.

Most of its supply chain is based in North America, making Groq less vulnerable to global supply disruptions and tariffs. 

Groq already operates data centers in the United States, Canada and Saudi Arabia. The new Helsinki center strengthens its presence in Europe and supports its goal of delivering fast, affordable AI inference capabilities worldwide. 

Read Next: 

• OpenAI Says Tokens Are Not Equity, No Partnership With Robinhood: Musk Says AI Company’s Equity ‘Is Fake’

Image: Shutterstock