Former Groq Engineers Sue Board Over Nvidia Licensing Deal
The shareholders allege directors favored insiders in a 2025 transaction described as a nonexclusive license. Its value has been reported at about $20 billion, though Groq disclosed no price.
Two former Groq engineers who held shares are suing the company’s board over its 2025 agreement with Nvidia, alleging directors favored insiders and shortchanged other shareholders in a transaction described as a nonexclusive technology license.
Groq announced the agreement on Dec. 24, 2025, saying it covered licensing its inference technology. The deal’s value has been reported at about $20 billion, but Groq’s announcement disclosed no dollar amount or how any proceeds were allocated.
Groq said Nvidia would hire several of its employees, including founder Jonathan Ross and President Sunny Madra. Groq also said it would remain independent under CEO Simon Edwards and continue operating GroqCloud.
The claims about the board’s conduct and shareholder treatment are allegations, not court findings. A separate Justice Department inquiry into the transaction has been reported, but its scope has not been publicly confirmed.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.