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US DOJ Investigates Nvidia's Acquisition of Hugging Face

2026-10-29 09:09

According to TechFlow, on Oct. 29, citing Yonhap News Agency via Reuters, the U.S. Department of Justice has launched an investigation into Nvidia's acquisition of Hugging Face, focusing on whether the $12.9 billion deal would give Nvidia control of a core AI distribution node, and whether Nvidia could use the open-source AI model-sharing platform to harm competitors or as a bargaining chip.

The investigation also covers Nvidia's acquisitions, investments, sales practices, and whether it pressured customers, including whether, after licensing Groq technology and recruiting its core engineers, it allocated more AI chips to customers purchasing networking equipment and Groq processors, as well as SchedMD and Run:ai acquired in December 2025. The report said the investigation does not indicate evidence of wrongdoing and does not necessarily lead to litigation; Nvidia said Hugging Face will remain open, and the deal is expected to close in the first half of next year.

Source: TechFlow