Update: Market Chatter: Nvidia-Groq $20 Billion Licensing Deal Faces Lawsuit
MT newswire2026/10/05 17:3001:30 PM EDT, 10/05/2026 (MT Newswires) -- (Updates with statement from Groq in fifth paragraph.) Nvidia's (NVDA) $20 billion licensing deal with Groq is the subject of a lawsuit alleging that Groq's board improperly sold the artificial intelligence firm's core assets and top engineers, the Financial Times reported Monday. The lawsuit, filed on Friday by Groq engineers and shareholders Benjamin Serebrin and Joshua Rubin, accuses the firm's board of not seeking to get the best price and structure for all shareholders, and not allowing some of them to vote on the deal, according to the report. The deal's final payout to the left-out Groq shareholders also did not account for future upside in the technology and synergies with Nvidia, the Times cited the lawsuit as saying. Nvidia's deal with Groq in December 2025 was for a nonexclusive license that gave Nvidia access to Groq's chips, as well as the hiring of several Groq executives, including founder and CEO Jonathan Ross. In an emailed statement to MT Newswires, Groq said that the lawsuit was "meritless" and that the company would defend itself against it. "Our licensing agreement with NVIDIA delivered exceptional value for Groq, our investors, and our employees," a Groq spokesperson said. Nvidia did not immediately reply to a request for comment from MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.) Price: 237.38, Change: +3.43, Percent Change: +1.47
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