DOJ Investigates Nvidia's 12.9 Billion Dollar Hugging Face Deal
The U.S. Department of Justice is investigating Nvidia's acquisition of Hugging Face to determine if the deal harms competition in the AI market.
The United States Department of Justice is investigating Nvidia's $12.9 billion acquisition of Hugging Face, an open-source platform used for hosting and testing AI models. Federal officials are examining whether the deal would allow Nvidia to control a fundamental distribution point for AI, potentially harming market competitors.
Nvidia announced the acquisition in September, with a projected closing date in the first half of 2027. CEO Jensen Huang stated the move would expand AI access for institutions and developers. The DOJ noted that these government inquiries do not constitute evidence of wrongdoing, and Nvidia has declined to comment on the probe.
This investigation is part of a broader, multi-administration antitrust examination into Nvidia's business conduct. The agency is also reviewing the company's sales practices and previous acquisitions, including SchedMD, Run:ai, and Groq.
