Nvidia's $12.93 Billion Hugging Face Deal Draws DOJ Scrutiny Over AI Competition

The U.S. Department of Justice has questioned Nvidia (NVDA) about its $12.93 billion acquisition of open-source platform Hugging Face, examining whether the deal could give the chipmaker control of a key AI distribution channel and harm rivals, Reuters reported Wednesday, citing two people familiar with the matter. Officials have asked about Nvidia's acquisitions, investments and sales practices, including whether it pressured customers, as part of a broader antitrust probe into the company's conduct that began under former President Joe Biden and has continued into the Trump administration. Investigators are also asking about Hugging Face's competitors. Nvidia has said it expects the deal to close in the first half of 2027, with Hugging Face continuing to support various chips, clouds and AI providers after completion. The DOJ has also examined Nvidia's December 2025 acquisition of SchedMD and its 2025 technology licensing and hiring arrangement with chip startup Groq. Nvidia declined to comment. Hugging Face did not respond to a request for comment.