US Justice Department questions Nvidia’s $12.9B Hugging Face acquisition

The US Justice Department is reviewing Nvidia’s $12.9 billion acquisition of Hugging Face, according to Reuters. Officials are asking whether the deal would give Nvidia control over a critical distribution point for AI models and if it could use this position to disadvantage competitors. This inquiry is part of a broader, ongoing investigation into Nvidia’s business practices, which includes its investments, chip sales, and previous deals.

Hugging Face is a leading platform for sharing open AI models and data. Nvidia agreed to acquire the company in September, stating it would keep the platform open. The deal is expected to close in the first half of 2027. The DOJ has declined to comment on the specifics but said it will continue to focus on the development of advanced AI, which the White House calls “Super Intelligence.”

Nvidia is also under antitrust scrutiny in France and has faced questions over its $20 billion Groq deal, which involved licensing technology and hiring executives rather than a full acquisition. The company is in talks for further investments in Reflection AI, another open model developer.

Regulatory attention on Nvidia’s expansion into software and AI models could affect how banks, insurers, and healthcare firms access and deploy AI tools. Executives should monitor the outcome for potential changes in competition and technology procurement.