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Nvidia's $20 Billion Licensing Deal Under DOJ Scrutiny
Nvidia's massive licensing deal with AI chip startup Groq is under scrutiny from the U.S. Department of Justice for potential antitrust evasion.
The DOJ launched an investigation shortly after the $17 billion deal was announced in December last year, questioning whether Nvidia structured the agreement to avoid regulatory review.
Nvidia obtained a license to use Groq's chip technology as part of the deal, which saw several senior executives from Groq move to the company. The total value of the transaction is reportedly around $20 billion.
The investigation centers on whether the arrangement constitutes an acquisition that bypassed regulatory scrutiny.