The U.S. Department of Justice is making inquiries into Nvidia’s proposed $12.93 billion acquisition of Hugging Face, according to Reuters, citing people familiar with the matter.
Reported questions cover the acquisition itself, along with Nvidia’s broader acquisitions, investments, and sales practices, Reuters said.
More Than a Software Purchase
Hugging Face functions as a distribution and discovery layer between model creators and the hardware used to run them.
Hugging Face is not a typical enterprise software buy. The platform is where developers discover, test, share, and deploy AI models and datasets.
That position is what draws regulatory attention. Nvidia is a leading supplier of AI chips; Hugging Face provides a platform where developers discover, share, test, and deploy models and datasets. Owning both raises the question of whether rival chip or cloud providers would receive equal footing on the platform going forward.
Regulators are reportedly examining whether Nvidia could use control of that channel to steer developers toward its own products or disadvantage competing hardware and cloud providers, according to Reuters.
The Customer-Pressure Thread
Reported questions also cover whether Nvidia tied chip access to purchases of other products, allegations that remain under investigation and unproven.
According to Reuters, the inquiry covers whether Nvidia linked access to its AI chips with purchases of networking products or other technologies. These are allegations under investigation, not established findings.
This examination is part of a broader, years-long DOJ investigation into Nvidia’s conduct across acquisitions, investments, and sales strategies, not a standalone probe triggered solely by the Hugging Face deal.
What Nvidia Says
Nvidia has committed to keeping the platform open but has not addressed the reported inquiry directly.
Nvidia has said Hugging Face will continue supporting a range of chip, cloud, and AI providers after the acquisition closes. According to Reuters, the company declined to comment on the reported inquiry.
Where the Deal Stands
The transaction is expected to close in the first half of 2027, though the inquiry could affect timing or produce negotiated conditions.
Nvidia announced the transaction in September 2026, with an expected close in the first half of 2027, subject to regulatory review and other conditions. The deal allocates approximately $11.9 billion to existing investors. A separate retention program worth up to $1 billion targets employees who join Nvidia.
The inquiry could affect the timeline, lead to negotiated conditions intended to preserve access for competing technologies, or result in no action. No enforcement outcome has been announced.
The Bigger Pattern Regulators Are Watching
Whether a single owner can control chips, models, and the developer platform connecting them is the central competitive question regulators appear to be assessing.
This case illustrates why regulators are scrutinizing AI ecosystems rather than evaluating individual products in isolation. Market power in AI can accumulate across chips, models, developer tools, and distribution channels. Nvidia’s proposed acquisition would connect several of those layers at once, and that concentration appears to be what regulators are examining, independent of whether the platform carries an open-source label.
