US Justice Department asks questions about Nvidia's Hugging Face deal
The Hugging Face website under a magnifying glass.
Source: Jernej Furman, CC BY 2.0
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The US Justice Department is asking about Nvidia's planned purchase of Hugging Face, Reuters reported on 28 October, citing two people familiar with the matter. Officials want to know how the deal would affect AI competition and whether it would let Nvidia "capture a fundamental distribution point for AI". CNBC confirmed the inquiry with its own source.
Nvidia agreed to buy Hugging Face on 2 September. Its SEC filing describes a purchase price of about $11.9 billion plus retention awards of up to about $1 billion for staff who join Nvidia, which together make up the $12.9 billion headline figure. The deal is expected to close in the first half of 2027, subject to regulatory approval.
The questions reach beyond this deal. According to Reuters, the department is also looking at Nvidia's acquisitions, investments and sales practices, including whether it has pressured customers, and has examined its SchedMD and Run:ai acquisitions and its Groq deal.
Nvidia declined to comment, Hugging Face did not respond to Reuters, and a Justice Department spokesperson declined to comment. Reuters notes that government investigations are not evidence of wrongdoing and may not lead to any action.
Sources
- US DOJ is inquiring about Nvidia's purchase of Hugging Face, sources say, Reuters
- DOJ questions Nvidia's $12.9 billion Hugging Face deal, CNBC
- Nvidia Form 8-K on the agreement, US Securities and Exchange Commission