The U.S. Justice Department is investigating whether Nvidia structured its licensing deal with AI chip startup Groq to avoid antitrust scrutiny, Reuters reported on September 9–10, citing a New York Times account of two people familiar with the matter. Nvidia announced a roughly $17 billion arrangement with Groq last year for a “non-exclusive license” to the startup’s chip technology and hired several Groq executives, including founder Jonathan Ross.
According to the Times report as relayed by Reuters, the department opened the inquiry shortly after the December announcement and has sent Nvidia a formal request for information. An Nvidia spokesperson said the Groq story is “a prime example of the American system working as designed to promote innovation, reward entrepreneurs, and benefit consumers.” Groq and the Justice Department did not immediately respond to Reuters outside regular hours.
The agency could fine the company if it finds Nvidia mishandled the deal, though the Times reporting said it is unlikely to seek to unwind the transaction. This brief covers the Reuters wire on the New York Times exclusive; it does not adjudicate whether the license was an acquisition in substance.