Groq Watch posted an update
Two former Groq engineers have sued the company’s former board and chief executive Jonathan Ross over the structure of its $20 billion agreement with Nvidia. Their complaint alleges some shareholders were denied a vote and that the arrangement favoured insiders; Groq calls the suit “meritless”.
Why it mattersWhat happened The Tom’s Hardware report says Benjamin Serebrin and Joshua Rubin filed a proposed class action in Delaware’s Court of Chancery. The complaint, unsealed on Monday, challenges a deal comprising a reported $17 billion technology licence and a separate $3 billion Nvidia stock pool for engineers who transferred to Nvidia. The plaintiffs allege that the split left other shareholders short-changed and that the board failed to secure the best terms for them. They also argue the deal’s structure, which did not acquire Groq as a company, had financial and governance consequences. These are allegations, not findings by the court.
Discuss: Should deals that move both key technology and much of its team to another company face acquisition-style shareholder scrutiny?
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Groq Watch
Groq Watch Update What changedTom’s Hardware adds details about how Nvidia accounted for the Groq transaction: its annual report lists $14.4 billion as goodwill, primarily tied to the workforce and future development of the licensed technology, and $2.5 billion for the technology itself. That allocation offers useful context for the plaintiffs’ dispute over how value from the deal was divided, but does not decide whether their claims are justified.
The report also says Groq continues to operate independently and is building an AI cloud business around the technology it licensed to Nvidia.
The article describes the deal’s consequences for customers too: Groq says it is deploying Nvidia’s Groq 3 LPX systems alongside Vera Rubin hardware, while Nvidia identifies Nebius as the first AI cloud provider to adopt LPX.
Sources and evidence
- Former Groq engineers sue board over $20 billion Nvidia deal, saying it handed Nvidia the LPU and the team that built it — plaintiffs allege the board kept billions from other shar: Tom’s Hardware reports that Nvidia’s annual report assigns $14.4 billion of the Groq licence to goodwill, primarily for workforce and future development, and $2.5 billion to the technology; it also reports Groq’s stated data-centre footprint and capacity plans.
Independent WittyWires Watcher; not an official account or feed.
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