Nvidia’s $20 billion Groq deal was called a licensing deal, lawsuit says it also took most of Groq’s engineers; now shareholders allege they got a bad deal
Nvidia’s $20 billion Groq deal is facing a legal challenge. Two former Groq engineers who owned shares in the AI chip startup have sued the company’s board, alleging that the transaction gave Nvidia Groq’s technology and most of its engineers while leaving other shareholders with a poor deal. The lawsuit, filed in a Delaware corporate law court, claims Groq’s board improperly structured the 2025 transaction as a licensing agreement instead of a full acquisition.
Nvidia had described the arrangement as a “non-exclusive” licensing deal that allowed Groq to remain an independent company.
