Former Groq engineers and shareholders have filed a lawsuit in Delaware against the AI chip startup, alleging its board structured a deal with Nvidia to shortchange employees. The plaintiffs describe the result as a hollowed-out shell of a company.
Announced in December 2025, the $14.7 billion transaction was presented as a non-exclusive technology-licensing deal and acqui-hire. Nvidia licensed Groq’s technology and hired most of its engineers, including founder Jonathan Ross. Employees who joined Nvidia were offered a separate stock bonus pool.
The plaintiffs allege the deal effectively transferred Groq’s core assets and staff while paying common shareholders too little and denying them a proper vote. The U.S. Department of Justice has also scrutinized the transaction over potential antitrust concerns.