Archive · 10 Sep 2026
Justice Department Probes Nvidia’s Groq Licensing Deal Over Antitrust
The Justice Department is checking a deal between Nvidia and Groq.
Nvidia makes important computer chips, and Groq develops chips for artificial intelligence.
The companies called the arrangement a technology-licensing deal rather than a full purchase.
Groq’s top leaders also moved to Nvidia.
Officials want to know whether this structure was used to avoid the usual review for mergers.
The government has not decided that Nvidia or Groq broke any law.
Nvidia says the deal is legal and helps workers, inventors, and consumers.
Groq is still operating and selling cloud computing services.
If the government finds a violation, it could fine Nvidia, but the deal would probably not be canceled.
The U.S. Justice Department is examining whether Nvidia structured its Groq deal to avoid antitrust review.
The arrangement was announced in December as a non-exclusive license giving Nvidia access to Groq’s AI-specific chip technology.
Groq CEO Jonathan Ross and COO Sunny Madra moved to Nvidia as part of the agreement.
The department reportedly opened its inquiry soon after the announcement and sent Nvidia a formal information request.
Nvidia says the deal rewards entrepreneurs, benefits consumers, and protects inventors’ and workers’ rights to pursue new ventures.
- Who
- The U.S. Department of Justice, Nvidia, and Groq, including Groq executives Jonathan Ross and Sunny Madra.
- What
- The Justice Department is investigating whether Nvidia’s licensing and hiring arrangement with Groq was structured to avoid antitrust review.
- When
- The deal was announced in December, and the inquiry reportedly began shortly afterward; Groq announced a funding round in August.
- Where
- The United States and Silicon Valley.
- Why
- The department is examining whether the arrangement functioned like a merger while avoiding the automatic review associated with traditional acquisitions.
Justice Department’s Antitrust Concerns
Nvidia’s Defense of the Deal
Possible avoidance of merger review
Justice Department’s Antitrust Concerns
The department is examining whether Nvidia and Groq used licensing and executive hiring to sidestep the review that can accompany traditional acquisitions.
Nvidia’s Defense of the Deal
Nvidia says the arrangement reflects the American system functioning as intended and protects the rights of inventors and workers to pursue new ventures.
Effect on competition and consumers
Justice Department’s Antitrust Concerns
The inquiry reflects concern that the structure may have allowed Nvidia to gain access to Groq’s technology without a conventional acquisition review.
Nvidia’s Defense of the Deal
Nvidia says the deal benefits consumers and rewards entrepreneurs.
Appropriate government response
Justice Department’s Antitrust Concerns
If wrongdoing is found, the Justice Department could impose a fine, though people cited in the report said it would likely not unwind the deal.
Nvidia’s Defense of the Deal
Nvidia maintains that the transaction is lawful; the investigation could ultimately clear the companies of any violation.
- Deal structure
- A non-exclusive licensing agreement gave Nvidia access to Groq’s AI-specific chips.
- Executive moves
- Groq CEO Jonathan Ross and COO Sunny Madra moved to Nvidia.
- Investigation status
- The Justice Department has sent Nvidia a formal request for information, but no conclusion has been reached.
- Possible consequence
- The agency could impose a fine if it finds wrongdoing, but would likely not seek to unwind the deal.
- Groq’s operations
- Groq continues to operate independently and sell cloud computing services.
- Funding round
- Groq announced in August that it was raising $350 million, with Nvidia planning to participate.
- Nvidia valuation
- The report described Nvidia as valued at $5.4 trillion.