Justice Department probes Nvidia's Hugging Face acquisition
The US Justice Department is investigating whether Nvidia's planned purchase of Hugging Face could expand its market power. The inquiry examines if controlling a central AI distribution channel would disadvantage competitors.
The US Justice Department has opened an investigation into Nvidia's planned acquisition of the AI platform Hugging Face. The inquiry focuses on whether Nvidia could expand its market power and disadvantage competitors by controlling a central distribution channel for AI models and training data. While no antitrust violations have been proven yet, Hugging Face is considered a key hub for AI models. The department is also reviewing other Nvidia deals, including one with chip startup Grog, specifically examining whether Nvidia has bundled customer-requested AI chips with other products. Nvidia promises the platform will remain open to other providers. The completion of the Hugging Face acquisition is planned for the first half of 2027, subject to regulatory approval.