TREE NEWS reports: The US Department of Justice is questioning Nvidia’s $12.93 billion acquisition of AI open-source platform Hugging Face, examining its impact on AI industry competition and whether Nvidia could control a key AI distribution channel to suppress rivals. The inquiry is part of a multi-year conduct investigation into Nvidia’s acquisitions, investments and sales, which also covers its purchases of SchedMD and Run:ai and a technology licensing deal with Groq. Nvidia expects the Hugging Face deal to close in the first half of 2027.
US DOJ questions Nvidia’s $12.93B acquisition of Hugging Face
The scrutiny here is less about the price tag than about distribution: Hugging Face is a primary channel through which open-source AI models reach developers, so a chipmaker owning it raises vertical-control questions that go beyond a standard merger review. The fact that this sits inside a broader multi-year conduct probe — spanning SchedMD, Run:ai and the Groq licensing deal — signals regulators are mapping a pattern of acquisitions rather than assessing one deal in isolation. With closing not expected until the first half of 2027, the open question is whether the inquiry stays a review or escalates into a formal challenge that reshapes how Nvidia can expand through acquisition.
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