Nvidia Faces Lawsuit and Antitrust Probe Over $20 Billion Groq Licensing Deal

Nvidia faces mounting scrutiny over its $20 billion transaction with AI chip startup Groq as a shareholder lawsuit proceeds alongside a U.S. Department of Justice antitrust investigation. Former Groq engineers Joshua Rubin and Benjamin Serebrin sued in Delaware Court of Chancery, alleging the board bypassed a required shareholder vote and shortchanged minority investors. The deal allocated $17 billion for a non-exclusive technology license and $3 billion in restricted stock units for 150 to 200 transitioning staff, including Groq's CEO and president. Concurrently, the DOJ is investigating whether the licensing structure was designed to evade regulatory antitrust review.