Nvidia-Groq $20B deal draws stockholder lawsuit

A lawsuit filed by two former Groq engineers alleges Nvidia's $20 billion asset deal with the AI chip designer "squeezed out" stockholders by offering a "lowball" price, according to documents filed Oct. 2 in Delaware's Court of Chancery. The plaintiffs, Joshua Rubin and Benjamin Serebrin, claim Groq's board sold the company without the required stockholder vote or a process to maximize value, alleging conflicts among board members and that Nvidia allocated $17 billion to a "non-exclusive" license plus $3 billion in restricted stock units for moving employees. Groq called the lawsuit meritless, stating the licensing agreement delivered exceptional value, while Nvidia has not commented. The deal, announced in December, saw CEO Jonathan Ross and other leaders join Nvidia, though Groq remains an independent company.