Nvidia faces lawsuit from Groq engineers over $20bn deal

Nvidia's $20 billion licensing deal with AI startup Groq is facing a lawsuit from two former engineers who allege the transaction improperly transferred key technology and talent while shortchanging other shareholders. The lawsuit, filed Friday in Delaware, claims Groq's board acted with conflicts of interest and failed to secure the best value for all shareholders. It alleges common stockholders were cashed out cheaply while top employees received separate payments for moving to Nvidia, and some shareholders were denied voting rights. The deal has drawn criticism from Democratic senators who say such "acquihires" may evade antitrust scrutiny. Nvidia has already produced its first chip based on Groq's technology, which entered full production in August.