Former Groq engineers challenge Nvidia’s $20 billion license-and-hire deal

Two former Groq engineers who still own stock have sued the AI-chip startup’s board, saying Nvidia’s $20 billion agreement effectively transferred Groq’s core technology and key people to Nvidia while leaving other shareholders with a weaker company. The transaction was presented as a non-exclusive license rather than a takeover, and Groq said it would remain independent; yet its founder, president, and other team members joined Nvidia. The plaintiffs allege that $17 billion went to the license while $3 billion in Nvidia stock was reserved for employees who moved, and that the board neither sought a required shareholder vote nor secured fair terms. Groq calls the lawsuit meritless and says the deal created exceptional value. The plaintiffs argue that moving a startup’s technology and talent without buying the company should have been treated more like a sale.