DOJ asks about Nvidia’s proposed Hugging Face acquisition

Reuters reported that DOJ officials asked whether the acquisition could give Nvidia control of a key distribution point for AI.[2] The department’s questions included how Nvidia might use Hugging Face’s platform to harm AI rivals and whether it could use the acquired business to gain leverage.[2] Reuters also reported that officials asked about Hugging Face’s competitors.[2] These questions are part of a broader examination of Nvidia that also covers acquisitions, investments, sales practices and whether the company pressured customers.[2]

Nvidia’s SEC filing says the company entered a definitive agreement to acquire Hugging Face on September 2, 2026.[3] The filing puts the purchase price for Hugging Face stockholders at approximately $11.9 billion, subject to adjustments; Bloomberg described the agreement as worth about $13 billion.[3][1] Nvidia also described an equity-based retention program of up to approximately $1 billion for Hugging Face employees joining the company.[3] Nvidia expects the acquisition to close in the first half of 2027, subject to customary closing conditions, including required regulatory approvals.[3]

Nvidia describes Hugging Face as a platform and community for developing, sharing and deploying open-source models, datasets and applications.[3] Nvidia said it has committed to keep the platform open in line with Hugging Face’s existing practices.[3] Under that commitment, users would continue to be able to upload and download models and datasets of their choosing, and the platform would support other silicon vendors.[3] Nvidia said the acquisition would provide Hugging Face with additional resources and support developers working with open models and applications.[3]

The DOJ’s broader examination of Nvidia began under President Joe Biden and continued under President Donald Trump, Reuters reported.[2] Reuters reported no indication that President Trump was involved in the probe and said it might not lead to DOJ action.[2] The Justice Department spokesperson declined to comment on matters before the department, citing longstanding policy.[2] Nvidia declined to comment on the inquiry, and Hugging Face representatives did not respond to a request for comment, Reuters reported.[2] Government investigations do not establish wrongdoing and do not necessarily lead to lawsuits.[2]