Former Assistant AG Kanter on the non-exclusive licensing agreement in the Nvidia-Groq deal

Core Viewpoint - Nvidia is engaging in a non-exclusive licensing agreement that raises questions about its structure and potential antitrust implications, as the company is paying a significant amount for this arrangement [2][4]. Antitrust Concerns - The structure of the deal may be designed to avoid regulatory scrutiny, which could be problematic if it is seen as an "avoidance device" under antitrust laws [4][5]. - If a transaction is structured to bypass mandatory notification under the Hart-Scott-Rodino Act, it could be deemed illegal, raising concerns about the legitimacy of such deals [4][5]. - The antitrust community is closely monitoring this transaction, as it involves acquiring key employees and technology from a direct competitor, which resembles an acquisition despite being labeled differently [6][8]. Competitive Landscape - Nvidia's deal involves licensing key technology and acquiring important employees from Grock, which, while not a full competitor, is seen as having expertise that could enhance Nvidia's GPU offerings [9][12]. - Grock has developed a more efficient method for inference, which could pose a competitive threat to Nvidia, particularly in terms of cost and energy consumption [12]. - The deal raises questions about whether Nvidia is weakening a competitor that could have otherwise grown to challenge its market position [13].