The Department of Justice scrutinises whether the graphics chipmaker structured its agreement with the AI startup to evade antitrust oversight.
The US Department of Justice (DOJ) is investigating whether Nvidia deliberately structured a licensing agreement with artificial intelligence chip startup Groq to bypass regulatory antitrust checks, according to a report by the New York Times.
Nvidia signed a $17 billion deal with Groq last year to secure a “non-exclusive licence” for the firm’s semiconductor technology. As part of the arrangement, Nvidia also recruited several top Groq executives, including founder Jonathan Ross.
The DOJ initiated its inquiry shortly after the deal was announced in December and has since issued a formal request for information to Nvidia. Regulators are examining whether acquiring key talent alongside intellectual property rights functions as a de facto merger designed to avoid standard notification requirements.
“The Groq story is a prime example of the American system working as designed to promote innovation, reward entrepreneurs, and benefit consumers,” an Nvidia spokesperson said in a statement. Neither Groq nor the DOJ responded immediately to requests for comment.
The report noted that while the agency could impose financial penalties if it concludes that Nvidia mishandled the transaction, it is unlikely to attempt to unwind the agreement.
