The Pulse
DOJ Questions Nvidia’s $12.93B Hugging Face Deal
The Justice Department is asking how Nvidia’s planned acquisition of Hugging Face could affect competition in AI, as the department continues a broader examination of Nvidia’s business practices. Nvidia says the platform will remain open to
AI.info Team · Written with AI · fact-checked ·
The U.S. Justice Department is asking whether Nvidia’s planned $12.93 billion purchase of Hugging Face could give the chipmaker control over an important route for distributing AI models, Reuters reported on October 28. Two people familiar with the matter told Reuters that officials are examining the deal as part of a wider inquiry into Nvidia’s conduct, including its acquisitions, investments and sales practices.
The questions focus on whether Nvidia could use the model-hosting platform to harm rivals or gain an advantage in the AI market. Nvidia expects the acquisition to close in the first half of 2027, subject to regulatory approvals.
DOJ examines Hugging Face’s role in AI distribution
Hugging Face hosts models, datasets and applications that developers use to build and deploy AI products. Justice Department officials have asked whether the acquisition would let Nvidia capture what Reuters’ sources described as a fundamental distribution point for AI. Officials are also asking about Hugging Face’s competitors, according to the report.
The inquiry centers on what Nvidia might do with the platform after the deal, not just on its price. Reuters reported that officials are asking how the company could use Hugging Face to disadvantage rivals. The questions come as Nvidia holds a major position in AI chips while the platform serves developers working across models and providers.
Nvidia says the platform will stay open
Nvidia announced the agreement on September 3. In its announcement, chief executive Jensen Huang said Hugging Face would remain open to developers using different models, frameworks, cloud providers and computing platforms. Huang wrote:
“NVIDIA compute will not be required to build on or deploy through Hugging Face.”
Nvidia’s announcement said more than 18 million developers, researchers and creators use Hugging Face to share over 3 million models, 500,000 datasets and 1 million applications. The company also said more than 200,000 businesses use the platform to discover, evaluate, customize and deploy AI. Those figures describe the platform’s reach; they do not resolve the Justice Department’s questions about how it might operate under Nvidia’s ownership.
Nvidia declined to comment to Reuters, and Hugging Face representatives did not respond to a request for comment. A Justice Department spokesperson declined to comment on matters before the department, citing its longstanding policy. The spokesperson also said:
“This DOJ under President Trump’s leadership will continue to prioritize advancement of Super Intelligence for the betterment of the American people.”
The scrutiny reaches beyond the proposed purchase
Reuters reported that the department’s broader examination began under President Joe Biden and has continued under President Donald Trump. The inquiry covers Nvidia’s acquisitions, investments and sales practices, as well as whether the company has pressured customers. The report said there was no indication Trump had become involved, and noted that the examination may not lead to any Justice Department action.
Other Nvidia transactions have also drawn questions. Sources told Reuters that officials examined the company’s acquisition of SchedMD, which makes open-source software used to run supercomputers, and looked at its acquisition of Run:ai, whose software helps AI chips run more efficiently. The department has also examined Nvidia’s 2025 agreement with chip startup Groq, under which Nvidia licensed technology and hired engineers; officials explored whether chip allocations were tied to customers buying networking equipment and Groq processors.
Those inquiries do not establish that Nvidia broke the law. Reuters noted that government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits. For the Hugging Face transaction, the next stated milestone is a planned closing in the first half of 2027, with regulatory approvals still required.