Nvidia is reportedly facing questions from the United States Department of Justice over whether its purchase of Hugging Face will have an impact on competition in the growing AI space. Nvidia agreed to buy Hugging Face in September, paying almost $13 billion. Hugging Face offers an open-source platform for the hosting and testing of new AI models, and that appears to be behind the DOJ's concerns. Reutersreports that the department has made inquiries about how the Hugging Face deal could change the landscape for Nvidia's competitors. The move could be seen as a way for Nvidia to lock in a key distribution channel for its own products. Hugging Face also sells AI infrastructure.
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This isn't the first time that Nvidia has found itself in the DOJ's crosshairs. As Nvidia becomes more vital to the tech industry as a whole and AI technologies specifically, the company has come under increasing scrutiny within the U.S. government, stretching back to the Biden administration. Things didn't improve when the Trump administration took over, with the U.S. president reportedly tempted to break the company up — despite being unfamiliar with what it was. More recently, Nvidia and other AI hardware makers found themselves under export controls. Nvidia's powerful AI-focused hardware can only be sold to approved entities, while it cannot ship to countries including China, Iran, North Korea, and Russia.
At home, the DOJ has also looked into Nvidia's purchase of SchedMD, a company whose software is used to run supercomputers that have ties to national security. Nvidia promised to continue to support the software as part of a larger three-year investigation into its conduct. Officials have also considered whether Nvidia dangled a larger allocation of its AI chips in front of customers who also purchased its networking hardware as well as Groq chips — Nvidia bought Groq for $20 billion in December of 2025. The deal included the acquihires of key members of the AI chip startup's team, including its CEO.
As for Hugging Face, Nvidia has similarly confirmed that it will continue to support a range of chip and AI providers once the buyout completes. It's expected that Hugging Face will officially become part of Nvidia in the first half of 2027.
Tom's Hardware has reached out to Nvidia for comment on the DOJ's concerns. No response had been received at the time of publication.
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Oliver Haslam has written about technology of all shapes and sizes for over 15 years, both online and in print. He's fascinated by how personal computing continues to change as tower PCs give way to foldable phones and beyond.
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