Stocks
Nvidia Stock Drops Amid DOJ Probe of $20 Billion Groq Deal
Nvidia's stock slipped about 1% early Thursday as the US Justice Department reviewed whether its $20 billion deal for access to Groq's AI chip technology was designed to limit antitrust scrutiny.
The DOJ probe focuses on a transaction announced in December that granted Nvidia access to Groq's tech while allowing the startup to remain independent, with Groq Chief Executive Jonathan Ross and Chief Operating Officer Sunny Madra moving to Nvidia.
The structure of the deal has drawn attention from US lawmakers, who have questioned whether it amounts to an acquisition that could reduce competition in the artificial-intelligence chip industry.