Nvidia's $20 billion Groq deal faces lawsuit alleging startup's stockholders were shortchanged
The case alleges that the licensing deal "squeezed out" stockholders by giving them a "lowball price."
TL;DR
- Former Groq engineers Joshua Rubin and Benjamin Serebrin are suing Nvidia and Groq.
- They allege Nvidia's $20 billion deal with Groq "squeezed out" stockholders and offered a "lowball" price.
- The lawsuit claims Groq's board approved the deal without a required stockholder vote.
- Groq stated the lawsuit is "meritless" and the Nvidia agreement delivered "exceptional value."
- The deal involved Nvidia licensing Groq's inference technology and senior Groq personnel joining Nvidia.