WASHINGTON — The U.S. Department of Justice has opened an investigation into Nvidia's $17 billion licensing agreement with AI chip startup Groq, focusing on whether the deal amounts to antitrust evasion in the artificial intelligence hardware market.
Nvidia dominates high-performance AI accelerator supply for data centers and advanced computing. The DOJ is examining whether large-scale licensing agreements could restrict access for smaller competitors or create unfair advantages that stifle innovation.
The probe signals regulators are tightening oversight of market concentration in AI infrastructure. The outcome could force major tech firms to restructure how they handle partnerships and acquisitions in critical emerging technologies.
Nvidia stock (NVDA) fell 0.9 percent to $223.67 on the news. The broader market turned cautious: the Nasdaq Composite dropped 0.6 percent to $26,253 and the S&P 500 fell 0.5 percent to $7,636.
Crypto held relatively steady during the tech sector selloff. Bitcoin traded at $78,356, down 0.3 percent over 24 hours. The Crypto Fear & Greed Index remained elevated at 69, signaling continued greed despite regulatory headwinds in tech.
The Justice Department investigation is preliminary with no timeline set for completion. Legal analysts expect a thorough review of the licensing agreement's terms and competitive impact.
