U.S. Department of Justice probes NVIDIA’s acquisition of Hugging Face: Will the distribution hub for 3 million AI models remain neutral?
1 days ago
Beating AI News Flash: NVIDIA’s approximately $12.9 billion acquisition of Hugging Face, announced in September, has now drawn inquiries from the U.S. Department of Justice. Regulators are concerned that NVIDIA will use the deal to control a key distribution channel for AI models and leverage this advantage to squeeze out competitors. Known as the "AI version of GitHub", Hugging Face boasts over 18 million developers and 3 million models. Developers can use the platform to search for models, download weights, share datasets, and deploy AI applications. NVIDIA has pledged to keep Hugging Face open post-acquisition and will not force developers to use its own GPUs. However, even without blocking competitors, factors such as model recommendation order, default deployment tools, and support for different chips could still sway developers’ choices. The Hugging Face acquisition is expected to close in the first half of 2027 and remains subject to regulatory approval.
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