Nvidia (NVDA) has been asked by two US Senators to provide additional information regarding the terms of its deal with artificial intelligence chip startup Groq to assess the agreement's implications for competition in the AI chip sector, according to a letter released Wednesday.

In a request to Chief Executive Jensen Huang, Senators Elizabeth Warren and Richard Blumenthal said the deal "appears to be structured to evade scrutiny by antitrust regulators" and raised concerns that it could stifle competition and further strengthen Nvidia's position in the AI chip industry.

The lawmakers asked why Nvidia chose to license Groq's technology and hire key employees instead of acquiring the company, questioning whether the structure was designed to avoid antitrust review.

They also requested details on which Groq assets, including personnel and technologies, are being acquired or licensed, as well as a list of Groq employees already hired by Nvidia and their roles. Additionally, the senators asked Huang who owns Groq's language processing unit intellectual property.

Nvidia did not immediately respond to requests for comment from MT Newswires.