Nvidia-Groq $20B Deal Faces Shareholder Suit Alleging Undisclosed Sale

Two former Groq engineers sued Groq's board in Delaware Chancery Court on October 2, 2026, alleging the company was effectively sold to Nvidia (NVDA) for $20 billion without shareholder approval and at an unfair price. Plaintiffs Joshua Rubin and Benjamin Serebrin, who hold Groq stock, claim the deal's structure circumvented Delaware law requiring a shareholder vote. Nvidia allocated $17 billion to a "non-exclusive" technology license and $3 billion in restricted stock units for roughly 150-200 Groq engineers who joined Nvidia. CEO Jonathan Ross and President Sunny Madra also moved to Nvidia. The plaintiffs allege a majority of Groq's board had conflicts of interest, costing shareholders billions. Groq called the suit baseless and said the licensing agreement delivered significant value to the company, investors, and employees. Nvidia CEO Jensen Huang told staff the company licensed Groq's intellectual property and hired its talent, but did not acquire Groq. Groq remains independent and has raised about $1 billion since June 2026.