Justice asks how Nvidia's $12.9 billion Hugging Face deal would affect AI competition, two sources say
DOJ started a probe under Biden of Nvidia's conduct that continues under Trump
Probe of Nvidia's conduct covers acquisitions, investments, and customer pressure, sources say
SAN FRANCISCO, Oct 28 (Reuters) - The US Department of Justice has made inquiries about how Nvidia’s NVDA.O $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, two people familiar with the matter said.
The Justice Department's recent questioning covers Nvidia's acquisitions, investments, sales practices, and whether the chip designer has exerted pressure on its customers, the two people said. On Hugging Face, Justice Department officials have asked whether the deal would let Nvidia capture a fundamental distribution point for AI, the people said. The acquisition is expected to close in the first half of 2027, Nvidia has said, adding that Hugging Face would continue to support work with a range of chip, cloud and AI providers.
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 here. 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.
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. Government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits.
A DOJ spokesperson declined to comment on any matters before the department, citing longstanding policy. The spokesperson added, "This DOJ under President Trump’s leadership will continue to prioritize advancement of Super Intelligence for the betterment of the American people."
Nvidia declined to comment, and Hugging Face representatives did not respond to a request for comment.
The broad Nvidia examination started under former Democratic President Joe Biden and has continued under the administration of Republican President Donald Trump, during which time Nvidia has been the most valuable company in the world and a singular force in AI. There is no indication that Trump has any involvement, and the probe may not result in any Justice Department action.
As part of the probe, the DOJ has examined Nvidia’s acquisition of SchedMD, one of the people said. The December 2025 purchase sparked worries among AI specialists about their access to SchedMD's open-source software, which helps run supercomputers relevant to national security. Nvidia has vowed to continue open access and support.