Former Groq engineers sue board over $20 billion Nvidia deal
Two former Groq engineers sued Groq’s board in Delaware over the Nvidia licensing deal behind the Groq 3 LPU.
Two former Groq engineers, Benjamin Serebrin and Joshua Rubin, have filed a class action lawsuit against Groq’s former board and CEO Jonathan Ross, alleging they received a $20 billion deal from Nvidia. The lawsuit, filed in Delaware's Court of Chancery, claims that the deal, which included a $17 billion license fee and a $3 billion Nvidia stock pool for engineers, left other shareholders with billions less.
Groq plans to continue operating independently using its own technology, now known as Nvidia's Groq 3 LPX. Nvidia's annual report attributes $14.4 billion of the license as goodwill, primarily due to the workforce and future development, and an additional $2.5 billion for the technology itself. The plaintiffs acknowledge that there is no direct Delaware decision addressing the specific issue raised in this case, but note that the deal is already under a DOJ inquiry.
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