Nvidia announced a $17 billion deal with Groq in December 2025 for a “non-exclusive license” to its chip technology and hired several of the startup’s executives, including founder Jonathan Ross. Months later, the US DOJ (Department of Justice) is investigating whether Nvidia structured its licensing deal with AI chip startup Groq to avoid antitrust scrutiny, as per a report from the New York Times.
DOJ is reportedly investigating Nvidia’s non-exclusive licensing deal with Groq
Citing two sources familiar with the matter, the report notes that the Justice Department launched its investigation shortly after the deal was announced in December. It has sent Nvidia a formal request for information. Nvidia’s spokesperson said the Groq deal shows the American system working as intended by supporting innovation, rewarding entrepreneurs, and benefiting consumers.
Groq and the US Justice Department have not responded on the matter yet. Regardless, Nvidia could face a fine from the agency if it finds that the company mishandled the deal. However, it is unlikely to seek to undo the deal, according to the report.
This wasn’t a full acquisition
The agreement gave Nvidia a non-exclusive license to Groq’s AI chip technology. Groq founder and CEO Jonathan Ross, President Sunny Madra, and several engineers joined Nvidia. This wasn’t a full acquisition, despite reports at the time suggesting that Nvidia was acquiring Groq for around $20 billion.
Groq confirmed that it would operate as an independent company under new CEO Simon Edwards. Meanwhile, its cloud business would also continue operating. The deal gave Nvidia access to Groq’s technology and talent while allowing Groq to remain a standalone business.
However, the unusual structure had already raised antitrust concerns. AI companies have struck similar deals involving technology licensing and hiring key employees without formally acquiring the companies. Such arrangements can avoid the government reviews that are common with traditional mergers and acquisitions. The DOJ is now investigating whether Nvidia structured the Groq deal this way to avoid antitrust scrutiny.
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