Nvidia is facing increased regulatory scrutiny following reports that the United States Department of Justice (DOJ) has launched inquiries into its proposed $12.93 billion acquisition of artificial intelligence platform Hugging Face.
According to a Reuters report published on October 28, federal investigators are examining whether the acquisition could weaken competition in the rapidly growing AI industry, particularly by giving Nvidia greater control over an important platform used by developers to access, share and distribute AI models.
Hugging Face has become one of the most important communities in the open-source AI ecosystem, hosting millions of developers, researchers and creators who share AI models, datasets and applications. Its platform allows developers to discover, build and deploy AI tools across different hardware and cloud infrastructure providers.
Regulators are reportedly concerned that Nvidia’s ownership could give the chipmaking giant an advantage over competing AI companies by allowing it to influence a major distribution channel for AI technology. Investigators are also examining whether the acquisition could give Nvidia additional leverage over customers and competitors.
Nvidia announced the proposed acquisition in September 2026, placing the transaction at approximately $12.93 billion. The company said the move would strengthen Hugging Face’s infrastructure and expand access to AI development tools worldwide.
Nvidia CEO Jensen Huang also promised that Hugging Face would remain an open platform, continuing to support competing chip manufacturers, cloud providers and AI developers. Under the proposed arrangement, users would not be required to use Nvidia hardware to build or deploy AI models through the platform.
The latest inquiry is part of a broader, longstanding Justice Department examination of Nvidia’s business practices, investments and acquisitions. Authorities have also reportedly reviewed other transactions involving the company, including its acquisitions of SchedMD and Run:ai, as well as its technology licensing arrangement with chip startup Groq.
Nvidia has declined to comment on the latest inquiry, while the Justice Department has maintained its policy of not discussing ongoing investigations.
The proposed acquisition is expected to close in the first half of 2027, subject to regulatory approval and other customary closing conditions.
Although the investigation does not establish wrongdoing or guarantee that the deal will be blocked, it highlights growing regulatory concerns about how much influence a single company could hold over the infrastructure and distribution of artificial intelligence.
As Nvidia continues to expand beyond chip manufacturing into software, AI infrastructure and developer platforms, the outcome of the Hugging Face acquisition could become an important development for the future of competition in the global AI industry.
