Justice Department Probes Nvidia-Groq 2025 AI Deal, Seeking Records on Antitrust Evasion
Updated
Updated · The New York Times · Sep 10
Justice Department Probes Nvidia-Groq 2025 AI Deal, Seeking Records on Antitrust Evasion
3 articles · Updated · The New York Times · Sep 10
Summary
A Justice Department inquiry opened shortly after the December deal is examining whether Nvidia used a licensing structure with Groq to avoid normal antitrust review, according to people familiar with the matter.
The department has sent Nvidia a formal demand for information about the arrangement, which Groq described as a nonexclusive licensing agreement giving Nvidia access to its AI chips.
The deal also brought Groq Chief Executive Jonathan Ross and Chief Operating Officer Sunny Madra to Nvidia, reflecting a broader pattern of AI companies licensing technology and hiring talent instead of pursuing outright acquisitions.
If investigators find Nvidia improperly handled the transaction, the likely outcome would be a fine rather than an order to unwind the deal.
The probe fits a wider push by regulators to scrutinize AI tie-ups that can escape automatic merger reviews even as power in the sector concentrates among a small number of companies.