The U.S. Justice Department is reportedly examining whether Nvidia arranged its licensing agreement with AI chip startup Groq to sidestep antitrust review.
The allegations follow Nvidia’s announcement of a $17 billion deal with Groq for a “non-exclusive license” to the startup’s chip technology and its recruitment of several executives, including founder Jonathan Ross, last year.
The Justice Department began investigating the arrangement soon after it was announced in December and has officially requested information from Nvidia, according to the NYT report.
“The Groq story is a prime example of the American system working as designed to promote innovation, reward entrepreneurs, and benefit consumers,” an Nvidia spokesperson said in a statement.
The agency might impose a fine if Nvidia mismanages the deal, but it is unlikely to attempt to reverse the transaction, the report noted.
By CEO NA Editorial Staff
