From BigGo Finance · BigGo Finance · · 1m 20s
DOJ Examines Nvidia's $12.93 Billion Hugging Face Acquisition
US Justice Department probes Nvidia's $12.93 billion Hugging Face deal for AI distribution control.
In brief
US Justice Department probes Nvidia's $12.93 billion Hugging Face deal for AI distribution control. US DOJ is reviewing Nvidia's $12.93 billion acquisition of Hugging Face to ensure it doesn't control AI distribution channels. Originally reported by BigGo Finance.
DOJ scrutiny
US Department of Justice questions whether Nvidia's $12.93 billion Hugging Face acquisition gives it control over AI distribution channels.
“according to two people familiar with the matter”
Antitrust review
DOJ's multi-year probe covers Nvidia's acquisitions, investments, and sales practices including SchedMD, Groq, and Run:ai.
“the questions form part of a wider multi-year antitrust examination”
Hugging Face role
Hugging Face runs open-source AI model repository where developers download, adapt, and share models.
“hugging face runs a widely used repository where developers download, adapt and share open ai models”
Nvidia's timeline
Nvidia expects Hugging Face deal to close in first half of 2027 while maintaining support for multiple chip and cloud providers.
“nvidia says the hugging face deal should close in the first half of 2027”
DOJ stance
DOJ declined to comment on pending matters but stated it would prioritize super intelligence advancement under Trump's leadership.
“this doj under president trump's leadership will continue to prioritize advancement of super intelligence for the betterment of the american people”
Historical context
DOJ probe began during Biden administration and continues into Trump's second term as Nvidia becomes world's most valuable company.
“the examination began during the biden administration and has carried into president donald trump's second term”
Other acquisitions
DOJ reviews Nvidia's 2025 SchedMD acquisition, Groq licensing, and Run:ai software for ai chip efficiency.
“officials have also examined nvidia's 2025 arrangement to license technology from chip startup groq”
Competitor response
Broadcom and Google design specialized chips to compete with Nvidia's AI hardware dominance.
“broadcom and alphabet's google design processors jointly aiming to beat nvidia with chips built for specific tasks”
Potential consequences
DOJ could impose conditions, extend review, or litigate if Nvidia's deal chills competition in AI ecosystem.
“if the department concludes that combination chills competition it could seek conditions a longer review or litigation”
What to remember
US DOJ is reviewing Nvidia's $12.93 billion acquisition of Hugging Face to ensure it doesn't control AI distribution channels.
