Department of Justice Investigating Nvidia Over $20 Billion Agreement With Groq

Nvidia secured its largest deal to date near the end of 2025. The arrangement is a $20 billion non-exclusive agreement with AI chip company Groq. According to reports from the New York Times citing sources with knowledge of the inquiry, the Department of Justice is probing whether the agreement was structured to bypass standard antitrust scrutiny.

The original agreement grants Nvidia non-exclusive rights to Groq technology, specifically focusing on artificial intelligence chips designed for low-latency inference. The first Nvidia AI rack featuring Groq hardware is scheduled to go live later this year. Anonymous sources indicate the Justice Department has sent Nvidia a formal demand for information regarding the transaction.

The central question involves licensing agreements versus traditional acquisitions. Structuring arrangements as licensing deals can sometimes evade automatic government reviews. Sources noted that the inquiry remains confidential, no specific findings of wrongdoing have been established, and investigators may ultimately determine that no violations occurred.

This reported investigation follows letters sent by senators earlier in the year urging regulatory agencies to examine technology agreements involving major firms like Nvidia, Google, and Meta. Legislators expressed concern that such arrangements function as de facto mergers by consolidating talent and resources while avoiding typical oversight. If faults are found during the ongoing inquiry, Nvidia could face financial penalties.