Nvidia Hugging Face deal draws Justice Department antitrust questions

The Nvidia Hugging Face deal is under review by the US Justice Department. Reuters reported the inquiry on Wednesday, 28 October, citing two people familiar with the matter.

Nvidia agreed in September to buy the open-model platform for about $12.9 billion. It said it would keep the platform open. It expects the deal to close in the first half of 2027.

What the Justice Department is asking

Officials want to know how the purchase would affect AI competition. According to the report, they are asking whether Nvidia would gain a fundamental distribution point for AI. They are also asking whether Nvidia could use Hugging Face to harm rivals.

Hugging Face is where developers share open AI models and data. Many companies rely on it. Control of that hub could shape who reaches users.

Why the Nvidia Hugging Face deal matters

Nvidia already dominates the chips that train AI models. Owning a leading model hub would add a second layer of influence. Rivals fear that could tilt the market.

The questions are part of a long Justice Department investigation into Nvidia. The report says it began under President Joe Biden. It covers Nvidia’s deals, its stakes in other firms and its chip sales.

The report also says Nvidia faces an antitrust probe in France. Last month, the department was reportedly examining how Nvidia structured a $20 billion deal with Groq. Nvidia licensed Groq’s technology and hired its top executives instead of buying the company.

What happens next

The Justice Department declined to comment, citing long-standing policy. Nvidia also declined. Hugging Face did not respond.

No complaint has been filed. A review of this kind can end in clearance, conditions or a challenge. For background on Nvidia’s open-model bets, see our report on the Nvidia-backed Reflection AI model.

Fact basis: Reuters, 28 October 2026, as reported by The Next Web; AI Weekly, 29 October 2026. The inquiry is unconfirmed by the agency.