According to The New York Times, the US Department of Justice is investigating a licence agreement between Nvidia and AI start-up Groq. Officials are examining whether the terms of the partnership were deliberately drawn up to sidestep antitrust rules.
The controversy centres on a deal worth $17 billion (€14.6 billion) concluded last year, which granted Nvidia a non-exclusive licence for Groq’s specialised chip technology. As part of that deal, Nvidia also hired several Groq executives, including the founder, Jonathan Ross.
After the agreement was announced in December, federal authorities launched an investigation and submitted a formal request to Nvidia to provide documentation and details.
In response, a Nvidia spokesperson defended the move, stating that the agreement illustrates how the US economic system encourages entrepreneurial success and delivers benefits for consumers.
Although the Department of Justice has not yet issued a definitive ruling, The New York Times suggests that the company could face fines if the acquisition is found to be unlawful. However, it is considered unlikely that the government would seek to completely unwind the transaction.
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