US DOJ Inquires About Nvidia’s Hugging Face Deal Amid Wider Antitrust Review

The US Department of Justice has opened a new line of questioning around Nvidia’s proposed $12.93 billion purchase of Hugging Face, an open‑source AI platform, according to two people familiar with the matter. The inquiries run in parallel with a years‑long conduct investigation into the chipmaker, marking the first time the DOJ’s scrutiny of the Hugging Face transaction has been reported [1].

DOJ Questions Vertical Integration

Justice Department officials have asked whether the deal would let Nvidia “capture a fundamental distribution point for AI,” the sources said [1]. Nvidia has said the acquisition is expected to close in the first half of 2027 and that Hugging Face “would continue to support work with a range of chip, cloud and AI providers” [1].

The DOJ’s questions also cover how Nvidia might use the platform to harm rivals or gain leverage in the AI market, and officials are reportedly asking about Hugging Face’s competitors [1]. The merger review is being conducted alongside a broader conduct probe that examines Nvidia’s acquisitions, investments, sales practices and whether it has pressured customers [1].

Broader Conduct Probe Continues

The wider investigation began under the Biden administration and has continued under President Trump. It has already examined Nvidia’s December 2025 purchase of SchedMD, whose open‑source scheduler runs on supercomputers tied to national security; AI specialists raised access concerns at the time, and Nvidia vowed to maintain open access [1]. The DOJ has also looked at Nvidia’s 2025 licensing and hiring deal with chip startup Groq, probing whether Nvidia tied larger AI‑chip allocations to purchases of its networking gear and Groq processors [1]. Another acquisition, Run:ai — software that helps GPUs run more efficiently — is also under review [1].

A DOJ spokesperson declined to comment on any matters before the department, citing longstanding policy, but added: “This DOJ under President Trump’s leadership will continue to prioritize advancement of Super Intelligence for the betterment of the American people.” The spokesperson also said it “would be inappropriate for the Department to conduct a merger investigation under the guise of a conduct investigation” [1]. Nvidia declined to comment; Hugging Face did not respond to a request for comment [1].

Political Context and Market Power

Nvidia holds the largest share of the AI‑chip market, powering models such as ChatGPT and Anthropic’s Claude. Competitors including Broadcom and Google are co‑designing custom processors, while AMD says it can deliver technically superior hardware and has signed billion‑dollar deals with AI labs and cloud operators [1]. Nvidia’s market position has helped CEO Jensen Huang develop a relationship with President Trump, who has disclosed owning Nvidia stock and awarded Huang the National Medal of Science. Trump critics have accused the administration of political intervention at the DOJ; the administration disputes that [1].

Staff‑led DOJ investigations often span multiple administrations, and the department routinely seeks input from companies when evaluating mergers. Government investigations are not evidence of wrongdoing and do not necessarily result in lawsuits [1].

What Remains Unknown

• It is unclear whether the DOJ will file a formal challenge to the Hugging Face deal or expand its conduct case; the probe may not result in any action [1].
• Nvidia has said Hugging Face would continue to support work with a range of chip, cloud and AI providers [1].
• The deal is expected to close in the first half of 2027, a timeline that provides a window for DOJ review [1].
• Hugging Face did not respond to a request for comment [1].