DOJ probes Nvidia’s $17B Groq AI licensing deal over antitrust evasion concerns

The U.S. Department of Justice has launched an antitrust investigation into Nvidia to determine whether the chipmaker deliberately structured its high-value partnership with AI startup Groq to bypass formal regulatory review.

The scrutiny centers on Nvidia’s estimated $17 billion arrangement struck last December, which secured a non-exclusive license for Groq's specialized inference chip technology alongside the high-profile recruitment of founder Jonathan Ross and several core executives.

Because the transaction was executed as a technology licensing and talent-acquisition agreement rather than an outright corporate merger—leaving the Groq entity technically independent—regulators are examining whether the structure serves as a "backdoor acquisition" intended to skirt mandatory antitrust reporting.

The DOJ has issued a formal request for information to Nvidia.

According to the NYT report, the Justice Department opened its investigation into the arrangement shortly after it was announced in December and has sent Nvidia a formal request for information.

"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.

Groq and the U.S. Justice Department did not ⁠immediately respond to Reuters' requests for comment outside regular business hours.

The agency could fine the company if it ⁠finds Nvidia mishandled the deal, though it is unlikely to seek to unwind the transaction, the ⁠report added.

While legal experts note that the agency could pursue financial penalties if it finds the deal bypassed oversight maliciously, federal investigators are unlikely to seek to unwind the completed transaction.

The probe highlights escalating regulatory crosshairs facing big tech companies utilizing non-traditional partnership frameworks to scale artificial intelligence capabilities without triggering standard market-monopoly reviews.