On Tuesday, Sen. Elizabeth Warren (D-Mass.) took to X to question whether Nvidia Corp (NASDAQ:NVDA) has effectively acquired Groq without triggering antitrust review.
Warren Flags Acquisition ‘In All But Name’
“NVIDIA paid $20 billion for AI chip competitor Groq’s technology and hired many of their key employees—effectively acquiring Groq in all but name,” Warren wrote.
She added, “Before this deal, NVIDIA already controlled 90% of the chip market… Is this deal an attempt to avoid antitrust scrutiny?”
Nvidia did not immediately respond to Benzinga’s request for comments.
Inside Nvidia’s $20 Billion Groq Tie-Up
The arrangement, announced in December 2025, centers on a non-exclusive licensing agreement for Groq’s inference technology to boost the deployment of high-performance AI globally.
At the time, reports also indicated Nvidia agreed to purchase certain Groq assets for about $20 billion in cash while bringing on key talent from the startup.
Investor Alex Davis, whose firm backed Groq, said the deal came together quickly after years of investment in the company.
China Strategy Adds New Layer
Separately, Nvidia is reportedly preparing a new line of AI chips for China using Groq’s technology.
Unlike earlier export-compliant chips, these processors are expected to be more adaptable rather than deliberately downgraded, potentially helping Nvidia maintain access to the Chinese market.
In October 2025, Nvidia CEO Jensen Huang said Nvidia’s market share in China had plunged from 95% to zero. The collapse at the time came amid escalating U.S.-China tech tensions.
However, speaking to reporters at the GTC conference last week, Huang said Nvidia has resumed production of its H200 chips.
Competition Heats Up In AI Chips
Despite its dominant position in the chip market, Nvidia faces rising pressure from rivals like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Qualcomm Inc. (NASDAQ:QCOM) and now Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Amazon.com, Inc. (NASDAQ:AMZN) and Meta Platforms, Inc. (NASDAQ:META).
Price Action: Nvidia shares closed at $175.20 on Tuesday, down 0.27% on the day and rose 1.00% to $176.95 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings indicate that Nvidia is underperforming in the short and medium term, but still shows strong long-term upside, backed by a Quality score in the 97th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Bryan J. Scrafford on Shutterstock.com
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