The Definitive Groq-th Story: A Match Made in AI Heaven
The development of LLMs over the past year has unlocked tremendous potential and fundamentally shifted how we interact with AI. As models like GPT-4 demonstrate step-function improvements as reasoning engines, industries from search to software development stand to be transformed. The race is now on to productize LLMs and deliver real-world value.
Yet, deploying these behemoth models is no trivial task. Running inference on complex architectures optimized for training (rather than serving) is computationally intensive and expensive. As LLMs enter mainstream workflows, AI startups need to be equipped to service the impending tsunami of demand for AI inference.
Enter Definitive Intelligence and Groq. Earlier this week, we announced the acquisition of Definitive Intelligence – one of Good Capital Fund I's early AI infrastructure bets – by emerging AI chip manufacturer, Groq. Groq last raised $300MN co-led by Tiger Global and D1 Capital.
Definitive has built a cutting-edge platform to operationalize open-source LLMs for the enterprise. Leveraging Groq's revolutionary AI accelerators that provide unmatched performance-per-watt, they can offer transformative price-performance compared to alternatives. Together, they aim to democratize access to LLMs and unlock the next frontier of AI adoption.
At Good Capital, we have been closely tracking these shifts in the AI landscape. Our conviction in Definitive and their vision was a result of the long-standing relationship that we have enjoyed with both Sunny and Gavin.
Sunny was a seasoned entrepreneur with exits to Ford and Pivotal under his belt. He had assembled a world-class engineering team with experience in building enterprise-grade software and operating large-scale systems. They were tackling what we recognized as one of the hardest challenges in AI - cost-effectively running massive models in production.
Definitive has demonstrated traction, counting Fortune 500 enterprises and leading AI startups as design partners. What struck us most was the depth of their customer obsession, which directly led to the growing need for fast inference. The team had uncovered critical gaps in the AI stack and architected an elegant set of building blocks to fill them - vectorized databases, low-latency orchestration, bespoke deployment pipelines.
Enter Groq. Groq had developed a radically innovative accelerator architecture optimized for inference. The team's pedigree was unimpeachable - the founder Jonathan Ross had invented Google's TPU. Together with Definitive's unique full-stack ML expertise, they will deliver AI-as-a-service an order of magnitude cheaper than hyperscalers.
This intersection of groundbreaking hardware and customer-centric software was right up our alley at Good Capital. We have always applied a lens of integrated systems thinking to stitch together emerging technologies and solve real customer pain points.
Investing in Definitive was a natural culmination of multiple core theses:
First, we believe that AI will become a fundamental building block for every application, similar to the cloud and mobile. Just as AWS ignited the cloud revolution with cheap, scalable computing, a new AI-native infrastructure layer will emerge to power the next generation of intelligent applications. Definitive is well-positioned to be a foundational player in this stack.
Second, we look for opportunities to leverage technological breakthroughs to expand access to previously scarce resources. With Groq's hardware and Definitive's software, the most advanced AI capabilities can be democratized beyond Big Tech and made available to every developer and enterprise, today.
Finally, we back founders with the clarity of vision and grit to tackle insurmountable odds. Sunny and Gavin exemplify the humble determination required to not just envision a better future but make it a reality through focused execution. We are inspired by their user-first approach and maniacal commitment to customer success.
Definitive represents the quintessential Good Capital deal. A pioneering team taking on a monumental challenge with an asymmetric upside. Fundamental technological innovation wrapped in a product users love. The opportunity to usher in a paradigm shift with massive economic and societal impact.
We are privileged to partner with Definitive and Groq on their journey to make AI accessible for all. With this acquisition, a new chapter opens - one that has the potential to reshape the AI industry as we know it.
Read the press release on the acquisition here.
