US Justice Department is inquiring about Nvidia's $12.93 billion Hugging Face deal
The US Justice Department has asked whether Nvidia's purchase of Hugging Face would let it capture a fundamental distribution point for AI, Reuters reported, as antitrust enforcers continue a broader, years-long look at the chipmaker's conduct.
The US Department of Justice has made inquiries about how Nvidia's $12.93 billion deal to buy open-source AI platform Hugging Face would affect competition in artificial intelligence, Reuters reported exclusively on October 28, citing two people familiar with the matter. CNBC and other outlets followed the report.
According to the sources, DOJ officials have asked whether the deal would let Nvidia capture a fundamental distribution point for AI models, how Nvidia might use the platform to harm rivals, and whether it could use the newly acquired business to gain leverage. Officials are also asking questions about Hugging Face's competitors.
The questions come alongside a broader investigation into Nvidia's conduct that began under President Joe Biden and has continued under President Donald Trump. Reuters said that probe covers Nvidia's acquisitions, investments and sales practices, and whether the company has pressured customers. Enforcers have examined Nvidia's December 2025 purchase of SchedMD, its 2025 deal to license technology from chip startup Groq and hire its engineers, and its acquisition of Run:ai. Officials have explored whether Nvidia offered larger allocations of AI chips to customers that also bought its networking equipment and Groq processors.
Nvidia has said it expects the Hugging Face acquisition to close in the first half of 2027 and that Hugging Face will continue to work with a range of chip, cloud and AI providers. Nvidia declined to comment, and Hugging Face did not respond to Reuters. A DOJ spokesperson declined to comment on matters before the department, adding that the department under President Trump will continue to prioritize the advancement of Super Intelligence for the American people.
Government investigations are not evidence of wrongdoing and do not necessarily lead to lawsuits, Reuters noted. Any action, however, could challenge the deal-making strategy that has extended Nvidia's influence across the AI industry.
Sources: Reuters, CNBC, Moneycontrol (Reuters). Image: Reuters
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