US Justice Department asks questions about Nvidia's Hugging Face deal, Reuters reports

In brief

Developing. Last updated 29 October 2026, 11:19 Dubai time (UTC+4).

The US Department of Justice has made inquiries about how Nvidia's $12.93 billion deal to buy Hugging Face would affect competition in AI, Reuters reported on 28 October, citing two people familiar with the matter. CNBC said it confirmed the inquiry with one person familiar with the matter. No lawsuit or formal challenge has been reported.

What Reuters reported

According to Reuters, DOJ officials have asked whether the deal would let Nvidia capture a fundamental distribution point for AI, the people said. The people told Reuters that officials are also asking how Nvidia might use the platform to harm rivals or gain leverage, and are asking about Hugging Face's competitors.

Reuters reports the questions sit alongside a years-long DOJ investigation into Nvidia's conduct that began under President Biden. That examination covers Nvidia's acquisitions, investments and sales practices, and whether it has pressured customers. Reuters notes that government investigations are not evidence of wrongdoing and do not necessarily lead to lawsuits.

Wider review

As Reuters reported it, citing the same people:

• Groq: the DOJ has scrutinised Nvidia's conduct after its 2025 deal to license Groq's technology and hire its engineers, including whether Nvidia unfairly offered larger AI chip allocations to customers who bought its networking equipment and Groq processors.
• Run:ai: the DOJ has also looked at Nvidia's acquisition of Run:ai, which makes software that helps AI chips run more efficiently.
• SchedMD: the DOJ has examined Nvidia's December 2025 acquisition of SchedMD, one of the people said. Nvidia has vowed to keep SchedMD's open-source software open.

Responses and timing

Nvidia declined to comment to both Reuters and CNBC. A DOJ spokesperson declined to comment on matters before the department, citing longstanding policy, Reuters reported. Hugging Face did not respond to Reuters.

In its 8-K filing on the deal, Nvidia said the transaction is expected to close in the first half of 2027, subject to customary conditions including regulatory approvals. It also said it has committed to keep Hugging Face's platform open and to support other silicon vendors.

Why it matters

This section is ByteNib analysis. An inquiry is an early step, and Reuters stresses that it may lead to no action. Still, Hugging Face is where much of the open-model ecosystem is distributed. Nvidia's openness commitments are likely to become central to any review. Developers and rival chipmakers that rely on the platform should watch for formal requests for information or changes to the expected closing timeline.

Sources and scope

• Reuters (via US News): Exclusive-US DOJ is inquiring about Nvidia's purchase of Hugging Face, sources say
• CNBC: Nvidia's $12.9 billion Hugging Face deal draws DOJ scrutiny
• Nvidia Form 8-K, 2 September 2026
• Nvidia blog: NVIDIA to Acquire Hugging Face

Reuters' report was read in full through its syndicated text on US News because reuters.com would not load. The "Why it matters" section is ByteNib editorial analysis. This article was researched and drafted with AI assistance and edited under ByteNib's editorial standards.

Drafted with AI assistance and reviewed by the editor before publication.

Updated 29 Oct 2026: removed quotation marks from a phrase that paraphrases Reuters' sources rather than quoting DOJ officials.

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