DOJ Scrutiny Weighs on Nvidia as Palantir Partnership Unveiled

Nvidia's stock fell by about 2.3% on Thursday to $218.36, as investors weighed the implications of a U.S. Justice Department investigation into the company's licensing arrangement with Groq.

The DOJ is examining whether the deal was structured in a way that avoided antitrust review. Nvidia entered into a non-exclusive license for Groq's language processing unit technology and hired certain employees, without buying equity or existing products.

The investigation does not mean Nvidia has violated antitrust law, but it adds another regulatory issue for investors to monitor. The company's annual report puts the total consideration at about $17 billion, consisting of $13 billion paid at closing and $4 billion payable within one year.