Nvidia faces DOJ investigation into $17 billion Groq deal

The U.S. Department of Justice (DOJ) is investigating a $17 billion agreement between Nvidia and the AI startup Groq. Authorities are examining whether the deal's specific structure was designed to bypass standard antitrust reviews typically required for mergers and acquisitions.

Rather than a full acquisition, the arrangement involves a non-exclusive technology license for Nvidia and the movement of several key Groq personnel, including founder Jonathan Ross and president Sunny Madra, to Nvidia. While Groq continues to operate as an independent entity under new CEO Simon Edwards, the DOJ has issued a formal request for information to clarify the nature of the partnership.

In a separate development, Nvidia is reportedly in discussions to act as an anchor investor, potentially committing up to $10 billion toward an initial public offering for Anthropic. Additionally, Nvidia is expanding its physical AI infrastructure through partnerships in Australia, aiming for a capacity of 2 gigawatts by 2027.