DOJ Probes Nvidia's $20 Billion Deal with Groq Over Antitrust Concerns

Nvidia's $20 billion deal with AI chip company Groq has caught the attention of the Department of Justice (DOJ), which is reportedly investigating whether the agreement was structured to avoid antitrust scrutiny.

The DOJ has sent Nvidia a formal demand for information about the deal, according to two sources who spoke to the New York Times. The issue at hand is that the deal is framed as a licensing agreement rather than an acquisition, which can potentially evade automatic government reviews.

This investigation follows calls from senators earlier this year for the FTC and DOJ to investigate tech deals that function as de facto mergers but are structured to avoid typical reviews.