The U.S. Department of Justice is investigating Nvidia Corp.'s $13 billion acquisition of open-source AI platform Hugging Face over concerns that the deal could allow the chipmaker to control a critical distribution node for artificial intelligence models. This inquiry adds to ongoing federal antitrust scrutiny surrounding Nvidia's market dominance, including probes into a prior $20 billion arrangement with Groq Inc. Nvidia has pledged to maintain Hugging Face's open platform, while the Justice Department reaffirmed its focus on advancing AI development.
DOJ probe into Hugging Face acquisition
- ▪The U.S. Department of Justice is conducting inquiries into Nvidia Corp.'s $13 billion acquisition of AI model platform Hugging Face, examining whether the deal allows Nvidia to control a key distribution point for artificial intelligence models and impact competition
- ▪The Justice Department declined to comment directly on specific inquiries regarding Nvidia's $13 billion Hugging Face deal, citing its longstanding policy against commenting on active matters
Nvidia's acquisition of Hugging Face
- ▪Nvidia announced its deal to acquire Hugging Face in September 2026 for approximately $13 billion, marking Nvidia's second-biggest purchase after its $20 billion Groq asset acquisition
- ▪Nvidia vowed to keep the Hugging Face platform open following its $13 billion acquisition of Hugging Face, touting the purchase as a measure to protect the open-source software community
Broader DOJ investigations into Nvidia deals
- ▪The Justice Department is pursuing a yearslong investigation into Nvidia Corp.'s overall dominance in the artificial intelligence chip market
- ▪The Justice Department is investigating whether Nvidia structured a $20 billion licensing agreement with AI chip startup Groq Inc. at the end of 2025 to avoid antitrust review after Groq's chief executive officer and operating chief transitioned to Nvidia
Hugging Face platform background
- ▪Hugging Face gained renewed recognition after OpenAI agents reportedly attacked its platform during testing, an event featured in the Netflix documentary AI Gone Rogue
- ▪Hugging Face sells infrastructure and collaboration tools to organizations working with closed, proprietary artificial intelligence, including chip companies
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