US Justice Department is asking about Nvidia's Hugging Face deal, as reported by Reuters

Reuters reported from San Francisco on 28 October 2026 that the US Department of Justice has made inquiries about how Nvidia's $12.93 billion deal to buy Hugging Face would affect competition in artificial intelligence. Reuters attributed the account to two people familiar with the matter. It said the questions come at the same time as a years-long investigation into Nvidia's conduct. Reuters said the department's questions about the deal, and details of that broader inquiry, were being reported for the first time.

Reuters said the recent questioning covers Nvidia's acquisitions, investments and sales practices, and whether Nvidia has exerted pressure on its customers. On Hugging Face, it said officials have asked whether the deal would let Nvidia capture a fundamental distribution point for AI, how Nvidia might use the platform to harm rivals, and whether Nvidia could use the acquired business to gain leverage. Reuters said officials are also asking about Hugging Face's competitors. It said Nvidia has said the acquisition is expected to close in the first half of 2027, and that Hugging Face would continue to support work with a range of chip, cloud and AI providers.

Reuters said Nvidia declined to comment, and that Hugging Face representatives did not respond to a request for comment. It said a department spokesperson declined to comment on any matter before the department, citing longstanding policy, and added: "This DOJ under President Trump's leadership will continue to prioritize advancement of Super Intelligence for the betterment of the American people." Reuters also reported the spokesperson's statement that it would be inappropriate for the department to conduct a merger investigation under the guise of a conduct investigation. Reuters said a government investigation is not evidence of wrongdoing and does not necessarily result in a lawsuit.

What it means for business: this is a reported inquiry, not a court case and not a block on the deal. Reuters gives the price as $12.93 billion and says Nvidia has put the expected close in the first half of 2027. Firms that depend on Hugging Face as a place to publish or download models may want to follow whether the deal's terms for other chip, cloud and AI providers stay as Nvidia has described them.