Nvidia's Deal with AI Chipmaker Groq Faces Antitrust Scrutiny

The US Justice Department is investigating Nvidia's deal with AI chipmaker Groq over antitrust concerns.

Nvidia announced its agreement with Groq in December, and shortly after that, the Justice Department began looking into whether the deal was structured to avoid scrutiny.

The investigation centers on a nonexclusive licensing agreement between Nvidia and Groq, which gave Nvidia access to Groq's custom chips designed for AI inference. As part of the deal, Groq's CEO Jonathan Ross and COO Sunny Madra joined Nvidia.

Nvidia has defended its arrangement with Groq, but the company could face a fine if the Justice Department finds wrongdoing. Officials don't expect the deal to be unwound, although the inquiry remains ongoing.