DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say

The U.S. Department of Justice has made inquiries into Nvidia's proposed $12.93 billion acquisition of the AI development platform Hugging Face, according to two people familiar with the matter. The questions are part of a broader, years-long antitrust investigation into the dominant chip designer's competitive practices.

Details of the Inquiry

Justice Department officials are reportedly examining how the acquisition would impact competition in the artificial intelligence sector. According to the sources, the inquiries focus on whether the deal would allow Nvidia to capture a fundamental distribution point for AI models and potentially use that position to harm rivals.

Nvidia has stated that the acquisition is expected to close in the first half of 2027. According to the original report by Reuters, a DOJ spokesperson, Nvidia, and Hugging Face declined to comment or did not respond to requests for comment.

Part of a Wider Probe

The questions about the Hugging Face transaction are an extension of a wide-ranging examination of Nvidia's market conduct. This broader probe reportedly covers the company's acquisitions, investments, and sales practices. Other transactions and practices said to be under DOJ review include:

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• The December 2025 acquisition of SchedMD, a company whose software helps manage supercomputers.
• The acquisition of Run:ai, a firm that makes software to improve the efficiency of AI chip workloads.
• A 2025 deal to license technology from chip startup Groq.
• Whether Nvidia unfairly tied the sale of its highly sought-after AI chips to the purchase of other products, such as its networking equipment.

Market Context and Implications

Nvidia holds a commanding share of the market for high-performance AI chips, which are essential for training and deploying large language models like ChatGPT. This dominance has made its business practices a subject of increasing regulatory interest.

It is important to note that government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits. However, sustained antitrust scrutiny presents a potential risk for Nvidia, whose strategy has involved numerous acquisitions and investments to fortify its ecosystem. Any formal action by the DOJ could challenge the company's expansion strategy and have significant repercussions for the competitive landscape in the AI industry.