Justice Department Investigating Nvidia’s Deal With Groq

By the Editorial Team · Friday, September 11, 2026

The U.S. Justice Department is investigating Nvidia's licensing agreement with AI chipmaker Groq to determine if the deal was designed to bypass standard antitrust review processes. This probe underscores growing regulatory concerns over indirect acquisitions in the AI industry and the potential concentration of market power among a few dominant firms.

The U.S. Justice Department has launched an investigation into Nvidia’s arrangement with artificial intelligence chipmaker Groq, examining whether the deal was structured to avoid standard antitrust scrutiny, according to sources familiar with the inquiry. The agreement, announced in December, was described by Groq as a “nonexclusive licensing agreement” granting Nvidia access to Groq’s custom-built AI chips. As part of the deal, Groq’s CEO Jonathan Ross and COO Sunny Madra joined Nvidia’s team.

Such licensing agreements and hires have become increasingly common in the AI sector, allowing companies to gain technology and talent without formally merging or acquiring firms outright. These approaches often circumvent automatic regulatory reviews designed to assess competition impacts in traditional mergers and acquisitions. U.S. regulators have been debating whether these arrangements warrant closer examination amid concerns about the concentration of power among a small number of AI companies.

The Justice Department’s probe began soon after the Nvidia-Groq deal was made public, and the agency has issued a formal request for information from Nvidia. If violations are found, the department could impose fines, though it is unlikely to require the unwinding of the agreement. Nvidia spokesman John Rizzo defended the deal, stating it exemplifies how the “American system” supports innovation and entrepreneurship while benefitting consumers.

A Justice Department spokesperson declined to comment directly on the investigation but emphasized the department’s commitment to ensuring affordability for Americans across the economy under current leadership. Meanwhile, Federal Trade Commission (FTC) Chair Andrew Ferguson indicated earlier this year that the agency is reviewing similar deals to determine if they are designed to avoid regulatory oversight.

The scrutiny extends to Congressional attention, with Senators Elizabeth Warren and Richard Blumenthal urging both the FTC and the Justice Department to investigate these types of arrangements, including Nvidia’s partnership with Groq. In a letter, the senators argued that such deals function as “de facto mergers” by consolidating talent, information, and resources while apparently circumventing merger review processes.

Despite the ongoing investigation, Groq continues to operate independently, offering cloud computing services and recently announcing a $350 million funding round in August that Nvidia planned to join. Before the deal, Groq was valued at approximately $7 billion, with investors including Samsung, BlackRock, and 1789 Capital—a firm associated with Donald Trump Jr.

Nvidia, valued at $5.4 trillion, has become a key financial supporter in the AI industry, leveraging its resources to aid startups and customers. CEO Jensen Huang has publicly praised former President Donald Trump’s efforts to reduce regulations and encourage AI investments. The Justice Department’s probe into Nvidia’s deal with Groq highlights ongoing debates about how emerging deal structures should be regulated in the rapidly evolving AI sector.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.