Nvidia Deal with AI Startup Groq Under DOJ Antitrust Scrutiny

Nvidia's $20 billion deal with AI chip startup Groq is under scrutiny by the U.S. Justice Department, causing Nvidia's stock to dip by about 1% on Thursday.

The investigation focuses on a licensing arrangement that gives Nvidia access to Groq's technology while allowing the startup to continue operating separately. The structure of the deal has drawn attention from U.S. lawmakers, who question whether it amounts to an acquisition that could reduce competition in the artificial-intelligence chip industry.

Nvidia has defended the transaction, saying it allows for the provision of Groq technology across its ecosystem while keeping Groq's cloud operation independently funded and operating.