The U.S. Department of Justice is investigating NVIDIA’s $20 billion licensing agreement with AI chip startup Groq. Federal officials are examining if the December 2025 deal was structured specifically to bypass federal antitrust review. Lawmakers argue the arrangement functions as a de facto acquisition because Groq’s CEO and COO joined NVIDIA while the startup remained independent.
This inquiry intensifies regulatory pressure on NVIDIA, which has faced DOJ scrutiny since early 2024. Critics claim the deal could stifle competition within the AI chip market. The investigation introduces new uncertainty for the company during its period of rapid sector growth.
NVIDIA maintains the agreement provides its ecosystem with licensed products. The company stated that Groq’s cloud business is now well-funded and continues to purchase NVIDIA GPUs.