DOJ Scrutinizes Nvidia’s $12.93 Billion Acquisition of Hugging Face Amid Antitrust Probe
The U.S. Department of Justice is investigating Nvidia's $12.93 billion purchase of Hugging Face to determine if the deal stifles competition in AI markets.
POLICY WIRE — San Francisco, United States — The U.S. Department of Justice has initiated inquiries into Nvidia’s proposed $12.93 billion acquisition of the open-source platform Hugging Face. Federal regulators are currently evaluating how the transaction might influence competitive dynamics within the artificial intelligence sector.
This development marks the first time details regarding the department’s specific focus on the Hugging Face deal have been disclosed. Officials are investigating whether Nvidia could leverage the platform to disadvantage rival firms or gain an unfair advantage in the broader AI market.
Beyond the Hugging Face acquisition, the Justice Department is continuing a long-standing investigation into Nvidia’s business conduct. This broader probe encompasses the company’s various investments, acquisitions, and sales practices, including concerns regarding potential pressure exerted on customers.
The acquisition, which was officially announced on September 3, is subject to premerger antitrust review under the Hart-Scott-Rodino Act. As the expected 2027 closing date approaches, regulators are questioning whether Nvidia’s control over a primary distribution point for AI models could negatively impact competing hardware providers.
Reporting by Policy-Wire (PW)
