Nvidia faces DOJ antitrust scrutiny over proposed Hugging Face open-source deal: What to know - The News International
Antitrust regulators are investigating whether Nvidia-Hugging Face $12.9 billion massive tech deal would give the chip giant unfair control over core open-source AI infrastructure
DOJ has opened an antitrust inquiry into Nvidia's planned acquisition of Hugging Face.
The US Department of Justice (DOJ) has made inquiries about how Nvidia’s $12.93 billion deal to buy open-source platform Hugging Face would affect competition in artificial intelligence, at the same time as antitrust enforcers pursue their years-long investigation into the chip designer's conduct.
The regulatory scrutiny focuses on whether the deal would grant the world's most valuable chipmaker too much control over critical artificial intelligence infrastructure.
The primary focus of the antitrust investigation is distribution control. Hugging Face serves as a central hub and foundational platform where millions of developers share open-source AI models, datasets, and applications.
Antitrust officials are examining whether owning Hugging Face would allow Nvidia to capture a vital, neutral bottleneck in the AI ecosystem—potentially giving it unfair leverage over competitors who rely on the platform to distribute or access open-source models.
This inquiry does not stand alone; it runs parallel to a broader, long-running DOJ investigation into Nvidia’s market behavior.
The wider probe spans Nvidia's overall corporate acquisitions and minority investments including semiconductors manufacturing giant's hardware sales practices and allegations of pressuring customers.
It also probes other recent strategic transactions, including its asset acquisition/licensing setup with Groq and its December 2025 purchase of SchedMD.
When Nvidia announced the $12.9 billion deal, it explicitly pledged to keep Hugging Face an open platform. The transaction is targeted to close in the first half of 2027, though intense regulatory evaluation could alter that timeline.
Both Nvidia and the DOJ have declined to comment extensively on the active probe, though the DOJ has noted that it continues to prioritize advancing national AI goals while maintaining fair competition.
Nvidia has become a cornerstone of the tech economy and AI boom, backing major players such as Anthropic and OpenAI while spurring data center development globally so its chips can power AI’s voracious computing needs.
The department's questions around the Hugging Face deal and details of its continued pursuit of Nvidia's conduct more broadly are reported for the first time.
Any action by the DOJ could ripple through the chip industry and challenge Nvidia's investing and acquisition strategy that has extended its influence in AI. However government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits.
