Nvidia's Groq Deal Under Investigation for Antitrust Concerns

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, the Justice Department began probing whether the arrangement was structured to avoid scrutiny.

The investigation centers on a nonexclusive licensing agreement that gave Nvidia access to custom chips designed for AI inference, as well as the hiring of key employees by Nvidia from Groq.

Groq remains an independent business and continues to sell cloud-computing services, despite its deal with Nvidia, which saw the company raise $350 million in new funding in August with Nvidia planning to participate.