US DOJ questions Nvidia's $12.93B acquisition of Hugging Face

Oct 29 — According to Reuters, citing two people familiar with the matter, the US Department of Justice is making inquiries about Nvidia's $12.93 billion acquisition of open-source AI platform Hugging Face, focusing on the deal's impact on competition in the AI industry and whether Nvidia would use it to control a key AI distribution channel and suppress competitors. The inquiries are part of the DOJ's multi-year conduct investigation into Nvidia's acquisitions, investments and sales practices, which also covers Nvidia's acquisitions of SchedMD and Run:ai and a technology licensing deal with Groq. Nvidia expects the acquisition to close in the first half of 2027. Both Nvidia and the DOJ declined to comment.