Nvidia Faces DOJ Scrutiny Over Groq Licensing Agreement
Nvidia (NVDA) is under scrutiny from the U.S. Department of Justice regarding its licensing agreement with AI startup Groq, which it acquired for $20 billion in a deal structured as a license rather than an outright purchase. The arrangement allowed Nvidia access to Groq's low-latency inference technology while keeping Groq independent. However, regulators and lawmakers are questioning whether the structure was designed to avoid antitrust review. Democratic senators Elizabeth Warren and Richard Blumenthal have raised concerns about potential anti-competitive behavior. This is not the first regulatory challenge for Nvidia; in 2024, it faced investigations into alleged abuse of its GPU market dominance, with similar probes ongoing in France and China. In September 2025, Chinese authorities found preliminary evidence that Nvidia violated local antitrust laws regarding a prior acquisition. Despite these challenges, Nvidia continues to perform strongly financially. For fiscal Q2 2027, the company reported $96.2 billion in revenue—a 106% year-over-year increase—and guided for $108 billion in revenue for the next quarter.
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