Home / Business and Economy / DOJ Probes Nvidia's AI Power Grab
DOJ Probes Nvidia's AI Power Grab
29 Oct
Summary
- DOJ inquiries focus on Nvidia's potential impact on AI competition.
- Investigation covers Nvidia's past deals, sales practices, and customer pressure.
- Hugging Face deal acquisition is expected to close in early 2027.
The U.S. Department of Justice has initiated inquiries into Nvidia's business practices, focusing on its significant $12.93 billion proposed acquisition of the open-source AI platform Hugging Face. These investigations aim to assess the potential impact on competition within the artificial intelligence sector. The DOJ's questions reportedly delve into Nvidia's history of acquisitions, its sales strategies, and any instances of customer coercion.
Specifically regarding the Hugging Face deal, which is slated for completion in the first half of 2027, antitrust enforcers are examining whether it would grant Nvidia control over a crucial AI distribution hub. Nvidia has stated Hugging Face will maintain support for various chip, cloud, and AI providers post-acquisition. This probe represents an extension of the DOJ's ongoing, multi-year investigation into Nvidia's conduct.
The DOJ's scrutiny also encompasses Nvidia's acquisition of SchedMD in December 2025, which raised concerns among AI specialists about continued access to its open-source software. Investigations have also looked into Nvidia's 2025 licensing deal with Groq and its acquisition of Run:ai, exploring whether Nvidia leveraged its dominant AI chip market position to influence other markets.
The broad examination of Nvidia, a key player in the AI boom, began under a previous administration and continues under the current one. While these investigations are not proof of wrongdoing, any action could significantly impact the chip industry and Nvidia's strategic approach to AI investments and acquisitions.
