DOJ Probes Nvidia’s Hugging Face Deal Over AI Competition Concerns | PYMNTS.com

DOJ Probes Nvidia’s Hugging Face Deal Over AI Competition Concerns | PYMNTS.com

By PYMNTS
Publication Date: 2026-10-29 01:44:00

The Justice Department is looking into whether Nvidia’s deal to acquire Hugging Face could harm competition in the artificial intelligence industry by giving the company a control of a key distribution point, Reuters reported Wednesday (Oct. 28), citing unnamed sources.

The inquiries the Justice Department has made about the acquisition are part of a larger investigation into Nvidia’s conduct that agency began during the Biden administration and has continued during the Trump administration, according to the report.

For the wider investigation, the agency has been asking about Nvidia’s other acquisitions, investments, sales practices and whether it pressures its customers, per the report.

An investigation is not evidence of wrongdoing and may not result in lawsuits, the report said.

The Justice Department and Nvidia both declined Reuters’ request for comment on the claims, per the report.

Nvidia has said in the past that after its acquisition, Hugging Face would continue to work with a variety of chip, cloud and AI companies, according to the report.

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CNBC reported Wednesday that it confirmed the probe with an unnamed source after the Reuters report was published.

Bloomberg said Wednesday that it reported in September that the Department of Justice was looking into whether Nvidia…