Two former Groq engineers sued in Delaware over Nvidia's roughly $20 billion deal, which was structured as a non-exclusive license with Groq's CEO and president joining Nvidia, not as an acquisition. The complaint says the board approved it without the stockholder vote Delaware law requires. Groq calls the suit meritless.
The case, if it proceeds, could test a structure that big technology companies have used to access AI talent and technology without a full merger. We are not lawyers, and no court has ruled, but companies considering similar structures will watch for what a judge says about stockholder rights.
Source: CNBC