Former Groq engineers Joshua Rubin and Benjamin Serebrin sued in Delaware on October 2 over Nvidia’s US$20 billion deal with Groq, a US-based AI chip startup focused on inference.

They alleged that stockholders were shortchanged and a required vote was bypassed.

The complaint said Groq’s board approved the transaction without adequately testing the market value of the assets involved, and that director conflicts cost stockholders billions.

Groq announced in December that it had entered into an inference-technology licensing agreement with Nvidia.

Groq founder Jonathan Ross, president Sunny Madra, and other senior leaders joined Nvidia as part of the deal.

Jensen Huang said Nvidia was licensing Groq’s intellectual property rather than buying the company.

Groq said the lawsuit was “meritless” and that the agreement delivered “exceptional value.”

The case centers on a Delaware corporate governance issue over when core-asset transfers require stockholder approval.

🔗 Source: CNBC

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