DOJ probes Nvidia's licensing deal with AI startup Groq

The U.S. Justice Department is ​investigating whether Nvidia ​structured its licensing deal with AI ​chip startup Groq to avoid antitrust scrutiny, the New York Times reported on Wednesday, citing two ‌people familiar ⁠with ⁠the matter.

Nvidia announced a $17 billion deal with Groq ​last year for a "non-exclusive license" to the startup's chip ​technology and hired several of its executives, including founder Jonathan Ross.

The Justice Department opened ​its investigation into the ⁠arrangement shortly ‌after it was announced in ​December ​and has sent Nvidia a formal ⁠request for information, according to the NYT ​report.


"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.

Groq and the ‌U.S. Justice Department did not immediately respond to Reuters' requests for comment ​outside regular ​business hours.

The ⁠agency could fine the company if it finds Nvidia mishandled the deal, though it is ​unlikely to seek to unwind the transaction, the report added.