Two former Groq engineers filed a lawsuit against the company’s board. They claim the $20 billion Nvidia licensing deal shortchanged stockholders. The suit alleges the board skipped a required stockholder vote. It also claims the board’s conflicted decision cost stockholders billions. Groq called the lawsuit meritless. Nvidia has not commented publicly. The deal included $17 billion for a non-exclusive license. It also set aside $3 billion in Nvidia stock for Groq employees. Around 150 to 200 Groq engineers joined Nvidia as part of the agreement. Groq remains an independent company but licensed its technology to Nvidia.
What changed
Groq operated as an independent company with no announced licensing or acquisition plans.
What it unlocks
Former Groq stockholders can now pursue legal action against the board for alleged breach of fiduciary duty.
- $20 billion deal value
- $17 billion non-exclusive license
- $3 billion in Nvidia RSUs for Groq employees
- 150 to 200 Groq engineers moved to Nvidia
Sources