The U.S. Department of Justice (DOJ) reportedly made inquiries about Nvidia’s proposed acquisition of Hugging Face and its potential effect on competition in AI. Reuters reported the inquiries on October 28, 2026, citing two people familiar with the matter. CNBC separately said it confirmed the inquiry through an unnamed source.
The reported questions focus on AI distribution and rivals
Reuters said investigators asked whether Hugging Face could become an important channel for distributing AI models and tools, whether Nvidia could gain leverage over rival firms through the platform, and how the proposed deal might affect Hugging Face’s competitors. Hugging Face hosts and tests AI models, a role that helps explain why its place in the AI ecosystem features in those reported questions.
The reports describe an inquiry into possible competitive effects. Nvidia’s proposed acquisition was valued at $12.93 billion, and the transaction remains subject to regulatory approvals. For the deal announcement itself, see NeoTeo’s earlier report on Nvidia’s proposed acquisition of Hugging Face.
Other Nvidia scrutiny mentioned in the reporting
Reuters also reported DOJ examination of Nvidia’s acquisitions of Run:ai and SchedMD. Separately, investigators reportedly asked about Nvidia’s 2025 technology-licensing and engineering-hiring arrangement with Groq, including whether customers received larger AI-chip allocations when they bought networking equipment and Groq processors. These are reported questions about separate matters.
A DOJ spokesperson declined to comment on pending matters and said generally that it would be inappropriate for the department to conduct a merger investigation under the guise of a conduct investigation.
Nvidia’s reported closing expectation
Reuters reported that Nvidia expected the proposed acquisition to close in the first half of 2027, subject to regulatory approvals. That is the company’s reported expectation, not a completed transaction.
