Groq is reportedly seeking $650 million in fresh funding from its current backers, according to sources speaking to Axios. The company is doubling down on its inference neocloud business, which is powered by its proprietary AI chip and systems.

Back in December, Groq struck a unique agreement with Nvidia—one that wasn't a full acquisition but was valued at around $20 billion. As part of that deal, several top-level Groq employees moved over to the chip giant, and Groq licensed its hardware technology to Nvidia. Axios reports that this arrangement was a win for Groq's investors, who received cash payouts in what would have been Nvidia's largest purchase had it been a full acquisition.

Now, those same investors are being asked to contribute more capital to support Groq's plans to expand its inference cloud business. This service allows developers and enterprises to host their inference-heavy applications. Inference refers to the processing that happens after an AI prompt is given, and it's currently a far bigger demand in the AI landscape than model training.

The company's new direction is being spearheaded by interim CEO Adam Winter and CFO Matt Eng. In many respects, the $650 million funding round appears to be a sure thing. Axios notes that Groq's backers, Disruptive and Infinitium, have committed to filling the round if other existing investors choose not to take their pro-rata shares.