US DOJ Probes Nvidia's $12.9B Hugging Face Acquisition
The US Department of Justice is investigating Nvidia's $12.9 billion acquisition of open-source platform Hugging Face, focusing on whether the deal would allow Nvidia to control a core distribution hub in the AI sector. This probe could impact the broader chip industry and challenge Nvidia's expansion strategy, though an investigation does not imply wrongdoing.
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IT Home reported on October 29 that, according to Reuters, two sources familiar with the matter revealed that the U.S. Department of Justice (DOJ) has begun inquiries into how Nvidia's $12.93 billion acquisition of open-source platform Hugging Face (approximately RMB 86.386 billion at current exchange rates, per IT Home's note) might affect competition in the artificial intelligence sector. Meanwhile, antitrust enforcers continue a years-long investigation into the chip designer's conduct.
According to the sources, the DOJ's recent inquiries have covered Nvidia's mergers and acquisitions, external investments, sales models, and whether the company has exerted pressure on its customers. Regarding the Hugging Face deal, DOJ officials are particularly focused on whether the acquisition would allow Nvidia to control a core distribution hub for AI.
Nvidia previously stated that the acquisition is expected to close in the first half of 2027, emphasizing that Hugging Face will remain open, compatible, and supportive of an ecosystem involving various chips, cloud services, and AI vendors.
The report noted that any action by the DOJ could ripple through the entire semiconductor industry and challenge Nvidia's investment and acquisition strategy aimed at expanding its influence in AI. However, the initiation of a government investigation does not imply wrongdoing nor necessarily lead to formal litigation.
A spokesperson for the U.S. Department of Justice declined to comment on any matters currently under review, citing long-standing policy. Nvidia also declined to comment, while representatives from Hugging Face did not respond to requests for comment.
One of the sources indicated that, as part of the investigation, the DOJ has also reviewed Nvidia's acquisition of SchedMD. This December 2025 acquisition raised concerns among AI experts regarding potential impacts on access to SchedMD's open-source software, which is used to run supercomputers related to national security. Nvidia has committed to maintaining open access and support.