Nvidia Faces Antitrust Probe Over $17 Billion Groq Deal

The US Justice Department is investigating whether Nvidia structured its licensing deal with AI chip startup Groq to avoid antitrust scrutiny.

Nvidia announced a $17 billion deal with Groq last year for a 'non-exclusive license' to the startup's chip technology and hired several of its executives, including founder Jonathan Ross.

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, according to the New York Times report.

Nvidia spokesperson said the deal is 'a prime example of the American system working as designed to promote innovation, reward entrepreneurs, and benefit consumers.'