US antitrust regulators are examining Nvidia’s Hugging Face agreement and sales practices

Meta description: US Justice Department reviews Nvidia's $12.93 billion Hugging Face acquisition as antitrust probes cover CUDA, CoreWeave, SchedMD, Run:ai and Groq deals.

Tags: Nvidia, Hugging Face, AI, Antitrust, CoreWeave

Featured image: Abstract technology illustration of an open-source AI hub, networked processors and cloud connections in cool blue and green tones, no real people, no company logos, no text.

Nvidia’s planned acquisition of Hugging Face is drawing scrutiny from the US Justice Department, which is examining whether the $12.93 billion deal could let Nvidia control a key hub for distributing AI and hurt competitors, according to two sources cited by Reuters. The case matters because Hugging Face is not just a product purchase; regulators are asking whether a hub for AI distribution could become a choke point for competitors. The review adds regulatory pressure to Nvidia’s broader business model, from chip sales to networking gear and open-source AI.

Background: Nvidia’s $12.93 billion Hugging Face plan

Hugging Face is an open-source platform. Nvidia plans to acquire it in a deal valued at $12.93 billion and expects the transaction to close in the first half of 2027. The company says Hugging Face will keep supporting partnerships with a range of chip, cloud, and AI providers. That commitment is meant to reassure customers and regulators that the platform will remain broadly available after the purchase. If Nvidia gains control over such a hub, competitors may worry that the platform could favor Nvidia-related infrastructure, even if the company says partnerships will continue.

Nvidia’s strategy spans AI chips, networking gear, software and acquisitions. CUDA programming software is part of that stack: it helps developers use Nvidia hardware for AI workloads. That integration has made Nvidia central to AI infrastructure, but it has also raised questions about whether customers can switch away easily.

Development: Antitrust probes widen across Nvidia deals and sales

The Hugging Face review is only one part of a larger investigation. US antitrust regulators are examining Nvidia’s acquisitions, investments, sales practices and possible pressure on customers. According to the sources, the probe began under Joe Biden and has continued under Donald Trump.

Officials have also looked at Nvidia’s acquisitions of SchedMD and Run:ai, along with its licensing deal with Groq. They are also checking whether Nvidia offered customers more AI chips if they bought Nvidia networking gear and Groq processors too. These questions suggest regulators are reviewing how Nvidia bundles hardware, software and access to AI compute. The combination of these lines of inquiry shows regulators are asking how Nvidia’s market position is reinforced by purchases, investments and contract terms.

Latest: France examines CUDA and CoreWeave stakes

Nvidia faces scrutiny in Europe as well. France’s competition authority is investigating the company over alleged anticompetitive business practices. The regulator is concerned about the industry’s dependence on Nvidia’s CUDA programming software and about Nvidia’s stakes in cloud providers like CoreWeave.

The authority pointed to possible risks such as supply restrictions, unfair contract terms, and discrimination against certain customers. These concerns echo the US review: whether Nvidia’s influence over key parts of the AI stack could make it harder for competitors, customers and partners to compete on fair terms.

What to watch next: the 2027 closing window

The next key date is the first half of 2027, when Nvidia expects the Hugging Face acquisition to close. Until then, regulators will be weighing whether Nvidia’s influence over open-source AI distribution, networking gear, CUDA software and cloud stakes could harm competition. The 2027 closing target gives regulators time to weigh the acquisition alongside the wider probes.

The outcome may affect not only the Hugging Face deal, but also how Nvidia structures acquisitions, investments and customer agreements in the AI market. For developers and cloud customers, the issue is whether access to AI models, chips and networking remains open enough to support competition.