DOJ probes Nvidia’s licensing deal with AI startup Groq

The US Department of Justice (DOJ) is currently probing Nvidia's licensing agreement with AI startup Groq, according to a report in the New York Times. The investigation centers around whether Nvidia's deal with Groq was structured to circumvent antitrust scrutiny, with two sources familiar with the matter confirming the probe. Nvidia disclosed a $17 billion deal with Groq last year, granting the startup non-exclusive access to its chip technology and employing several Groq executives, including co-founder Jonathan Ross.

The DOJ initiated its inquiry shortly after the deal was announced in December, sending a formal request for information to Nvidia, sources told the Times. An Nvidia spokesperson dismissed the probe, stating that it exemplifies the American system promoting innovation, rewarding entrepreneurs, and benefiting consumers. Both Groq and the DOJ have declined to comment to Reuters outside regular business hours.

The investigation could lead to fines if it finds Nvidia breached antitrust rules, though unwinding the transaction is considered unlikely, according to the report.