DOJ Examines Nvidia's $12.9 Billion Hugging Face Acquisition Over AI Competition Concerns

The U.S. Department of Justice is scrutinizing Nvidia's planned $12.9 billion acquisition of AI platform Hugging Face, with officials asking how the deal would affect competition in artificial intelligence and whether it would allow Nvidia to control a critical distribution point for AI models and tools, according to two people familiar with the matter.

The Hugging Face inquiry is part of a broader DOJ probe into Nvidia that encompasses the chipmaker's acquisitions, investments, sales practices, and whether it has pressured customers. That investigation began under the Biden administration and has continued under President Trump. Nvidia announced the definitive agreement to acquire Hugging Face on September 2, 2026, and has said the deal is expected to close in the first half of 2027.

Nvidia and the DOJ both declined to comment, and Hugging Face did not respond to requests for comment. The DOJ and Nvidia have not commented publicly, and Reuters noted that government investigations are not evidence of wrongdoing and do not necessarily lead to lawsuits.