Nvidia Faces DOJ Investigation Over Antitrust Concerns in Groq Deal

The US Justice Department is investigating Nvidia's deal with Groq, an inference chip designer. The inquiry began shortly after the deal was announced in December and has since sent a formal request for information to Nvidia.

The structure of the deal is what matters in this case. Nvidia took a non-exclusive licence to Groq's chip technology and hired several of its executives, but it did not buy the company.

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

The investigation centres on whether Nvidia deliberately structured the deal to avoid antitrust review. Regulators would have to argue that the arrangement functioned as a merger, even though it was not one on paper.