Two former Groq engineers sue over NVIDIA $20B licensing deal
NVIDIA's $20 billion licensing deal with Groq has landed in court.
Two former Groq engineers are suing, saying the deal broke a nonexclusive agreement meant to keep Groq independent and unfairly handed over its tech and assets to NVIDIA.
Lawsuit cites vote denial and antitrust
The lawsuit also claims some Groq shareholders weren't allowed to vote on the sale and that conflicts of interest shaped the decision.
Plaintiffs argue NVIDIA wanted Groq's talent and technology, a move they say skirts antitrust rules.
They also point out that shareholder payouts didn't reflect future gains from teaming up with NVIDIA, while most of the deal was taxed as income, hitting Groq's finances hard.
Meanwhile, NVIDIA has already unveiled the first new chip based on Groq's technology, which entered full production in August.