Former Groq engineers sue board over $20B Nvidia deal

Two former Groq engineers sued the AI chip startup's board in Delaware, alleging its $20 billion Nvidia deal shortchanged stockholders by undervaluing assets and bypassing a required vote. The Oct. 2 complaint claims the board failed to maximize value and that conflicts of interest tainted most members, leaving stockholders billions worse off. Plaintiffs Joshua Rubin and Benjamin Serebrin retained stock after leaving Groq. The deal included $17 billion for a non-exclusive license and $3 billion in restricted stock for engineers. Groq called the lawsuit meritless, while Nvidia's Groq 3 LPX chip has since entered production.