DOJ Probes Nvidia's Multibillion-Dollar Licensing Deal with Groq

The U.S. Justice Department is investigating whether Nvidia structured its licensing deal with AI chip startup Groq to avoid antitrust scrutiny. [1] The probe was opened shortly after the arrangement was announced last December, and the Justice Department has sent Nvidia a formal inquiry. [1] The New York Times first reported the investigation on Wednesday, citing two people familiar with the matter. [1]

Nvidia announced the deal with Groq last year, which involved a "non-exclusive license" to the startup's chip technology. [1] The agreement was valued at $17 billion by some reports and $20 billion by others. [1][3] As part of the arrangement, Nvidia hired several Groq executives, including the startup's founder, Jonathan Ross. [1]

The DOJ's investigation highlights increasing regulatory focus on alternative deal structures designed to bypass traditional merger and acquisition scrutiny. By paying up to $20 billion for a non-exclusive license and absorbing the startup's leadership team—including founder Jonathan Ross—Nvidia effectively acquires Groq's capabilities without formally buying the company. This arrangement mirrors other recent partnerships in the AI space that stop just short of outright acquisitions. What the sources don't address: Whether the Justice Department plans to seek an injunction to halt the continued integration of Groq personnel and technology into Nvidia.