Sept 9 (Reuters) – The U.S. Justice Department is investigating whether Nvidia structured its licensing deal with AI chip startup Groq to avoid antitrust scrutiny, the New York Times reported on Wednesday, citing two people familiar with the matter.
Nvidia announced a $17 billion deal with Groq last year for a “non-exclusive license” to the startup’s chip technology and hired several of its executives, including founder Jonathan Ross.
The Justice Department opened its investigation into the arrangement shortly after it was announced in December and has sent Nvidia a formal request for information, according to the NYT report.
“The Groq story is a prime example of the American system working as designed to promote innovation, reward entrepreneurs, and benefit consumers,” an Nvidia spokesperson said in a statement.
Groq and the U.S. Justice Department did not immediately respond to Reuters’ requests for comment outside regular business hours.
The agency could fine the company if it finds Nvidia mishandled the deal, though it is unlikely to seek to unwind the transaction, the report added.
(Reporting by Carlos Méndez in Mexico City; additional reporting by Preetika Parashuraman and Nethra Sailesh; Editing by Sherry Jacob-Phillips and Rashmi Aich)
