The Justice Department is assessing Nvidia's proposed acquisition of Hugging Face
The Justice Department is asking how Nvidia’s proposed $12.93 billion acquisition of Hugging Face could affect competition, Reuters reported, citing two people familiar with the matter; CNBC separately confirmed the inquiry with a source. Officials are examining whether the deal would give Nvidia control of a key distribution platform for AI, the sources said.
More context
Reuters reported Wednesday, citing two people familiar with the matter, that the Justice Department is assessing the competitive implications of Nvidia’s proposed $12.93 billion Hugging Face acquisition. CNBC said it confirmed the inquiry with a source familiar with it. Officials are examining whether the purchase would give Nvidia control of a key distribution channel for AI models and software, potentially strengthening its position against competitors, according to the sources cited by Reuters. The questions are part of a broader Justice Department investigation into Nvidia’s acquisitions, investments, sales strategies and possible pressure on customers. Investigators have also scrutinized Nvidia’s 2025 licensing and hiring arrangement with chip startup Groq and its acquisition of Run:ai, according to sources cited by Reuters. Nvidia expects the deal to close in the first half of 2027, Investing.com reported.
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Reporting
- Investing.com News — Nvidia faces DOJ antitrust scrutiny over $12.9B Hugging Face deal, Reuters says
- Pluang — US DOJ probes Nvidia's $12.9B Hugging Face deal... | Pluang
- CNBC — DOJ questions Nvidia's $12.9 billion Hugging Face deal
- News.Az — US DOJ probes Nvidia’s $12.9 billion Hugging Face deal | News.az
- Reuters — EXCLUSIVE: US DOJ is inquiring about Nvidia's purchase of Hugging Face, sources say
Verifier’s note
CNBC reports that DOJ is questioning Nvidia’s proposed $12.9 billion Hugging Face acquisition, and Reuters independently reports DOJ inquiries into the same deal. Investing.com and News.az carry Reuters-based coverage, and Pluang attributes its report to CNBC.