Top News

The US Department of Justice is examining whether Nvidia’s agreement with AI chipmaker Groq was structured to avoid antitrust review. The deal involved licensing technology and hiring Groq executives Jonathan Ross and Sunny Madra. Nvidia said the arrangement supports innovation, while Groq continues operating independently after the agreement.

The US Department of Justice is examining whether Nvidia structured its deal with AI chipmaker Groq in a way meant to sidestep antitrust review. Groq had described the arrangement, announced in December, as a non-exclusive licensing agreement giving Nvidia access to its AI-specific chips. As part of the deal, Groq's chief executive Jonathan Ross and chief operating officer Sunny Madra moved to Nvidia.

The New York Times noted that AI companies have increasingly relied on deals combining technology licensing with the hiring of key personnel, rather than pursuing outright acquisitions, a structure that often avoids the automatic government review triggered by traditional mergers.

Investigation opened soon after deal was announced

According to the report, the Justice Department opened its inquiry shortly after the Groq-Nvidia deal was made public and has since sent Nvidia a formal request for information. The people cited by the Times said that if wrongdoing is found, the agency could impose a fine on Nvidia, but would likely not seek to unwind the deal itself. They cautioned that no conclusion has been reached and that the department could ultimately clear the companies of any violation.