The Justice Department has asked how Nvidia’s proposed $12.93 billion acquisition of Hugging Face could affect AI competition, while continuing a broader inquiry into Nvidia’s conduct. The deal is expected to close in the first half of 2027.
The Justice Department has asked whether Nvidia’s proposed acquisition of Hugging Face would let the chip designer capture a fundamental distribution point for AI or gain leverage over rivals, two people familiar with the matter said. Officials are also asking about Hugging Face’s competitors.
The broader examination, which began under former President Joe Biden and continues under President Donald Trump, covers Nvidia’s acquisitions, investments, sales practices and whether it pressured customers. The department has also examined Nvidia’s acquisitions of SchedMD and Run:ai, as well as its 2025 deal to license technology from Groq and hire its engineers.
Nvidia has said the $12.93 billion deal is expected to close in the first half of 2027 and that Hugging Face would continue supporting work with a range of chip, cloud and AI providers. Government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits; the DOJ may not take action.
