Dept of Justice reportedly probes Nvidia over $13 billion Hugging Face AI platform acquisition — concerns raised over competition in AI and pressure on customers

The United States Department of Justice (DOJ) is reportedly investigating Nvidia's acquisition of Hugging Face, a $13 billion deal completed in September. Hugging Face provides an open-source platform for hosting and testing new AI models, which has raised concerns about competition within the rapidly growing AI sector. Reuters reports that the DOJ has inquired about the potential impact of the Hugging Face acquisition on Nvidia's competitors.

Some analysts speculate that this move could serve as a strategy for Nvidia to secure a vital distribution channel for its own products, as well as AI infrastructure. The data center cooling market and custom AI ASIC technologies are also under scrutiny, along with the U.S. government's evolving stance on AI chip regulations. This is not the first instance of Nvidia facing DOJ scrutiny; the company has been under increasing government scrutiny since the Biden administration, dating back to the Trump administration.

Nvidia's AI hardware is subject to export controls, restricting sales to certain countries. The DOJ has also investigated Nvidia's purchase of SchedMD, a company whose software is used in running national security-related supercomputers. Despite the ongoing investigations, Nvidia has assured that it will continue to support chip and AI providers after the acquisition of Hugging Face, set to be completed in the first half of 2027.