DOJ expands antitrust probe into NVIDIA's Hugging Face deal
The Department of Justice has broadened its investigation into NVIDIA to assess the competitive impact of its $13 billion acquisition of Hugging Face. The review now encompasses a wider range of corporate activities, signaling a comprehensive examination of the company's market power.
The Department of Justice has expanded its antitrust investigation into NVIDIA, specifically querying how the company's $13 billion acquisition of Hugging Face affects competition within the artificial intelligence industry. The inquiry focuses on whether NVIDIA would control a key distribution point for AI models through this transaction, which was announced in September and is expected to close in the first half of 2027.
The scope of the investigation extends beyond the Hugging Face deal to include NVIDIA's acqui-hire of chip-making startup Grok, as well as its acquisitions of SketchMD and RunAI. The DOJ is also examining the company's venture investments, sales practices, and alleged pressure on customers. Sources indicate that the investigation predates the Grok deal and is broader than previously understood, covering traditional acquisitions rather than just acqui-hires. While no charges have been filed, the expanded scope suggests a full top-to-bottom review of NVIDIA's competitive practices. The DOJ has made specific inquiries about how the acquisition would impact competition in the AI industry, marking a significant escalation in regulatory oversight of the sector.