DOJ probes Nvidia's licensing deal with AI startup Groq, NYT reports

The U.S. Justice Department is probing whether Nvidia engaged in antitrust violations with its licensing agreement with AI startup Groq, according to a report in The New York Times. The probe was sparked after the deal, valued at $17 billion, was announced in December last year. The arrangement granted Nvidia a non-exclusive license to Groq's chip technology and saw the hiring of several Groq executives, including founder Jonathan Ross.

The investigation was initiated shortly after the deal was announced and the DOJ has formally requested information from Nvidia regarding the transaction. If the inquiry finds Nvidia in breach of antitrust laws, the agency could impose a fine; however, it is unlikely to demand that the deal be terminated. Nvidia, Groq, and the U.S. Justice Department have not yet commented on the matter.