[gandalfgeek]

> About a year ago, Groq announced a $1.5 billion infrastructure investment deal with Saudi Arabia. They also secured a $750 million Series D funding round.... Then in maybe one of the best rug pulls of all time, in July they quietly changed their revenue projections to $500 million. A 75% cut in four months. I’ve never seen anything like that since the 2008 financial crisis.

Not following the core argument here. Author seems to be comparing valuation in funding rounds to revenue projections. Revenue projection was revised downward, valuation was not.

Good point about not running the proprietary models, but that doesn't preclude strategic fit with Nvidia.

[IshKebab]

Yeah the point is you aren't supposed to mislead investors with overly rosy revenue projections. That's fraud (but probably hard to prove).

If they told the investors privately then they're probably fine, but I doubt they did.

[ralph84]

Any time a forward-looking statement is given in an investment context it has a safe harbor caveat attached about how it could be wrong. Companies miss revenue projections all of the time. That's not fraud.

[illiac786]

It is if you lied.

[toomuchtodo]

Prove the lie, that is the challenge.

[richardwhiuk]

In private companies, it's much more caveat emptor, than in the public markets.