Doj probes nvidia's $20 billion licensing pact with Groq

The U.S. Department of Justice is examining Nvidia's $20 billion non-exclusive licensing agreement with Groq, alleging it may have attempted to bypass antitrust regulations, as reported by the New York Times. The investigation aims to assess whether such arrangements could be deemed illegal, potentially impacting numerous AI industry deals. The structure of the agreement was initially viewed as a strategic move by Nvidia to avoid triggering antitrust scrutiny. The deal, which involves a non-exclusive licensing arrangement, has raised concerns about market competition and fair practices. The DOJ's inquiry highlights the growing regulatory focus on tech industry mergers and collaborations, particularly in the rapidly evolving AI sector. This case could set a precedent for how similar agreements are evaluated in the future.