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

On September 9th, the U.S. Justice Department is probing whether Nvidia attempted to circumvent antitrust regulations surrounding the chipmaker's licensing agreement with AI startup Groq, according to a report from the New York Times. The newspaper cited two individuals privy to the situation. The announcement of Nvidia's $17 billion deal with Groq last year involved a non-exclusive license to Groq's chip technology and the hiring of several executives from Groq, including its founder Jonathan Ross.

The Justice Department initiated the investigation shortly after the deal's announcement in December and has sent Nvidia a formal request for information about the transaction, as per the NYT report. Should the agency identify issues with Nvidia's handling of the deal, it may impose a fine, though it's unlikely to mandate the deal's dissolution, the report continued.

Nvidia, Groq, and the U.S. Justice Department were not available for comment from Reuters outside regular business hours.