US Justice Department reviews NVIDIA's $20bn Groq licensing deal

September 15, 2026 at 12:55 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The US Justice Department is examining whether NVIDIA's $20 billion licensing agreement with Groq was structured to avoid antitrust review, The New York Times reported. The deal, announced in December, transferred Groq CEO Jonathan Ross, President Sunny Madra, and part of its engineering team to NVIDIA while Groq remained formally independent. The review is part of a broader Justice Department antitrust investigation into NVIDIA that began in 2024.

Key Facts

The US Justice Department is reviewing whether NVIDIA's $20 billion licensing deal with Groq was structured to avoid antitrust review, The New York Times reported.
Groq CEO Jonathan Ross, President Sunny Madra, and part of the engineering team moved to NVIDIA under the deal announced in December.
NVIDIA spokesperson John Rizzo said the Groq deal shows the US system working as intended to reward entrepreneurs and benefit consumers.
FTC Chairman Andrew Ferguson told Bloomberg in January that the agency began examining whether such deals were structured to avoid regulatory oversight.
Senators urged the FTC and Justice Department to investigate deals including the NVIDIA-Groq partnership, calling them de facto mergers that bypass merger control procedures.

The Licensing Deal

NVIDIA and Groq concluded a $20 billion licensing agreement last year that Groq described as a non-exclusive license for inference technology. Under the deal, Groq CEO Jonathan Ross, President Sunny Madra, and part of the engineering team joined NVIDIA. Groq remained formally independent, and the transaction was not filed for antitrust clearance despite NVIDIA receiving both technology and two key executives. NVIDIA spokesperson John Rizzo stated that the Groq deal exemplifies how the American system stimulates innovation, rewards entrepreneurs, and benefits consumers.

Regulatory Scrutiny

The Justice Department began investigating the Groq deal shortly after its December announcement, sending an official request to NVIDIA, according to a source. FTC Chairman Andrew Ferguson told Bloomberg in January that the agency was examining whether such deals were deliberately structured to avoid regulatory oversight. Bloomberg reported that the Justice Department has been examining possible antitrust violations by NVIDIA since 2024, with questions about the Groq agreement arising early this year as part of that broader probe. If the Justice Department concludes that NVIDIA should have obtained antitrust approval, it may seek civil penalties, though a final decision has not been made and no violations may be found.

Senate Pressure

Senators called on the FTC and Justice Department to investigate a series of deals, including the NVIDIA-Groq partnership. In a letter to the agencies, the senators wrote that these deals are de facto mergers allowing companies to combine personnel, information, and financial resources while attempting to bypass merger control procedures.