The Justice Department is investigating whether Nvidia attempted to circumvent antitrust scrutiny through a licensing deal with AI chipmaker Groq announced in December. Under the "nonexclusive licensing agreement," Nvidia gained access to Groq's custom AI chips while Groq executives Jonathan Ross and Sunny Madra joined Nvidia. Such arrangements, common in the AI sector, often avoid automatic government reviews required for traditional mergers.

The DOJ opened its investigation shortly after the deal's announcement and has sent Nvidia a formal information demand. Potential outcomes include fines, though the deal likely would not be unwound. Nvidia spokesman John Rizzo defended the agreement as promoting innovation and rewarding entrepreneurs. The DOJ declined comment but emphasized prioritizing affordability under President Trump's leadership.

FTC Chair Andrew Ferguson and Senators Elizabeth Warren and Richard Blumenthal have also scrutinized these "de facto mergers" that consolidate talent and resources while bypassing regulatory oversight. Despite the investigation, Groq continues operating, raising $350 million in August with Nvidia's planned participation. Nvidia, valued at $5.4 trillion, has become central to the AI boom, with CEO Jensen Huang developing close ties to President Trump.