US DOJ Launches Antitrust Probe into Nvidia's $12.93 Billion Hugging Face Acquisition

Nvidia shares dropped 1.7% after reports revealed the U.S. Department of Justice opened an antitrust investigation into the company's planned $12.93 billion acquisition of Hugging Face. Regulators are assessing whether the purchase enables Nvidia to monopolize a critical distribution channel for open-source AI models and software. The inquiry has been folded into a broader multi-year probe into Nvidia's commercial conduct, including past transactions such as Run:ai, SchedMD, and a 2025 Groq deal. Nvidia stated Hugging Face will remain open to competing hardware and software, targeting completion in the first half of 2027.