US Department of Justice opens inquiry into Nvidia's acquisition of Hugging Face
The US Department of Justice has opened an inquiry into Nvidia's $12.93 billion acquisition of Hugging Face, assessing the deal's impact on AI competition, with the core focus being whether the transaction would give Nvidia control of a fundamental distribution point for AI models and software. Nvidia announced the acquisition on September 3, 2026, with consideration comprising approximately $11.9 billion in cash and up to $1 billion in employee retention equity incentives, and the deal is expected to close in the first half of 2027. Hugging Face hosts more than 3 million AI models and 500,000 datasets, serving over 18 million developers and 200,000 enterprises. According to Reuters, the investigation focuses on whether Nvidia could expand its market power and squeeze out competitors by controlling this important distribution channel for AI models; no specific antitrust violation has been identified so far.
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View story:The US Department of Justice opens inquiry into Nvidia's acquisition of Hugging Face