Published • loading... • Updated
DOJ probes Nvidia’s licensing deal with AI startup Groq, NYT reports
The agency has sent Nvidia a formal request for information and could impose fines if it finds the licensing deal was meant to avoid merger review.
- On Wednesday, the New York Times reported that the Justice Department is investigating whether Nvidia intentionally structured its licensing deal with AI startup Groq to evade antitrust scrutiny.
- Nvidia announced a deal last year for a "non-exclusive license" to Groq's chip technology, hiring founder Jonathan Ross and senior engineers to absorb key talent without an outright acquisition.
- Senators Elizabeth Warren and Richard Blumenthal previously questioned the Groq arrangement in March, while Nvidia used a similar $6bn structure with Poolside, hiring 109 staff.
- Nvidia spokesperson John Rizzo defended the arrangement, stating it is a "prime example of the American system working as designed to promote innovation" and reward entrepreneurs.
- Investigators could seek fines if they find wrongdoing, though forcing Nvidia to unwind the deal remains unlikely; the Justice Department sent a formal information request shortly after the deal was announced in December.
Insights by Ground AI
17 Articles
17 Articles
The Justice Department is investigating whether Nvidia structured its Groq deal to avoid antitrust review
The US Justice Department is examining whether Nvidia deliberately structured its licensing deal with inference chip designer Groq in a way that avoided antitrust review, according to a New York Times report. The Justice Department opened its inquiry shortly after the deal was announced in December and has since sent Nvidia a formal request for […] This story continues at The Next Web
·Amsterdam, Netherlands (Kingdom of the)
Read Full Article
Coverage Details
Total News Sources17
Leaning Left2Leaning Right4Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 25%
C 25%
R 50%
Factuality
To view factuality data please Upgrade to Premium
