Key facts
- DOJ is inquiring about Nvidia's proposed $12.93 billion acquisition of Hugging Face.
- The probe is part of a broader, ongoing investigation into Nvidia's conduct.
- Officials are asking if the deal would give Nvidia control over a fundamental AI distribution point.
- The DOJ is also examining Nvidia's acquisition of SchedMD and its deal with Groq.
- Nvidia's acquisition of Hugging Face is expected to close in the first half of 2027.
The US Department of Justice has initiated inquiries into Nvidia's proposed $12.93 billion acquisition of Hugging Face, as part of a broader antitrust investigation into the chip designer's market practices. Officials are reportedly seeking to understand how the deal might impact competition within the artificial intelligence sector, particularly concerning Nvidia's potential to control a key distribution point for AI technologies. The DOJ's scrutiny extends to Nvidia's broader conduct, including past acquisitions like SchedMD and technology licensing deals. The investigation, which began under the previous administration, continues under President Donald Trump's leadership. Nvidia has stated the Hugging Face deal is expected to close in the first half of 2027, with Hugging Face continuing to support various chip and AI providers.