NVIDIA's $20 billion acquisition of AI chip design company Groq's assets is facing a lawsuit. Former Groq engineers Joshua Rubin and Benjamin Serebrin filed a lawsuit in the Delaware Court of Chancery on October 2, alleging that the deal "squeezed out" shareholders at a "bargain price." They claim Groq's board sold the company without a shareholder vote required by Delaware law and failed to maximize the transaction's value.

A Groq spokesperson responded that the licensing agreement with NVIDIA delivered "exceptional value" to the company, investors, and employees, and stated they would "vigorously defend" against the "meritless" lawsuit. The lawsuit also alleges that NVIDIA allocated $17 billion to non-exclusive licenses and $3 billion in restricted stock units (RSUs) to transferring employees, and that a majority of the board members had conflicts of interest. NVIDIA CEO Jensen Huang previously stated in an internal email that the agreement would expand NVIDIA's capabilities but did not involve acquiring Groq as a company.