Trending
Prev Story
Next Story

Nvidia's $12.9 billion Hugging Face deal draws DOJ scrutiny

CNBC World •
October 28, 2026 • 08:13 PM
• By Lora Kolodny,Eamon Javers
2
2 reads 0 reactions

Nvidia faces DOJ inquiry over its $12.9 billion purchase of Hugging Face.

Nvidia's $12.9 billion Hugging Face deal draws DOJ scrutiny

Nvidia is facing questions from the U.S. Department of Justice concerning its acquisition of Hugging Face , an open-source platform for hosting and testing AI models, and how that deal may impact competitors in the field.

CNBC has confirmed the probe with a source familiar with it. Reuters first reported the DOJ's inquiry on Wednesday.

Nvidia announced its nearly $13 billion acquisition of Hugging Face in September , and at the time, CEO Jensen Huang wrote that the deal would help "expand access to AI for developers and institutions worldwide."

Hugging Face already had massive adoption. At the time of the deal, Nvidia said in a press statement that more than 18 million people and more than 200,000 companies reportedly used Hugging Face to share at least 3 million models and 500,000 datasets.

Hugging Face also sells infrastructure and collaboration tools to organizations working with closed, proprietary AI including chip companies.

The Hugging Face acquisition marked Nvidia's second-biggest purchase, after it paid $20 billion for Groq assets at the end of last year, a deal that has also attracted DOJ scrutiny . The closest comparable to Hugging Face's business was GitHub, a software repository that was acquired by Microsoft in 2018 for $7.5 billion.

The company gained renewed recognition after reports that OpenAI agents attacked the platform during testing.

The company and that incident are part of a new, Netflix "insta-documentary" called "AI Gone Rogue."

Prev Swipe Story Next

Same Story from Other Publications

Compare how 6 other independent news outlets reported on this story.

6 Publications
Sydney Morning Herald (SMH)
51m ago
‘I don’t care’: Inside Jensen Huang’s last hours as Nvidia CEO

‘I don’t care’: Inside Jensen Huang’s last hours as Nvidia CEO

At the end, Jensen Huang looked broken and shattered, his legendary energy depleted.

BBC News
7h ago
Nvidia: How the Jensen Huang scandal exposed a headache for business-friendly Singapore

Nvidia: How the Jensen Huang scandal exposed a headache for business-friendly Singapore

The scandal has cast a spotlight on Singapore's success as a chip hub - and a location for alleged illicit trade.

NPR News
7h ago
Can Jensen Huang's departure help Nvidia's competitors catch up? : Consider This from NPR

Can Jensen Huang's departure help Nvidia's competitors catch up? : Consider This from NPR

Nvidia has long been the kingpin of the semiconductor industry – a company whose huge technological bets paid off, making its microchips the most in-demand in the world.But now that its CEO Jensen Huang is out amid an alleged spying and extramarital affair scandal, will the shake-up leave an opening for Nvidia’s competitors to catch up?In this episode, we dive deep on the strategies that put Nvidia ahead of the pack, and how other companies are positioned in this moment with Dylan Patel, founder and CEO of the AI and semiconductor research firm SemiAnalysis. This episode was produced by Kai McNamee and Connor Donevan, with audio engineering by Ted Mebane. Our director is Jonas Adams. It was edited by Christopher Intagliata and Ashley Brown. Our executive producer is Courtney Dorning.

CNN International
7h ago
Nvidia’s week of chaos, explained | CNN Business

Nvidia’s week of chaos, explained | CNN Business

In a matter of days, a corporate scandal has toppled the leader of the world’s second-most valuable company, Nvidia CEO Jensen Huang; thrust his family into the spotlight; raised huge questions about the future of the AI industry; and landed on Washington’s doorstep.

The Next Web (TNW)
9h ago
Nvidia and Dyania bring AI chart review onto hospital servers

Nvidia and Dyania bring AI chart review onto hospital servers

Dyania Health's AI reviewed records of 7,800 Cleveland Clinic valve patients on hospital-owned Nvidia servers, building a model of valve failure risk.

The Guardian
11h ago
Why the Nvidia scandal is far from over - The Latest

Why the Nvidia scandal is far from over - The Latest

Jensen Huang’s resignation from the AI chipmaker Nvidia has sent shockwaves through the global economy. The fallout is not over yet, with criticism mounting over the apparent lack of action from the US commerce secretary. Lucy Hough speaks to the Guardian’s global technology reporter, Aisha Down

Related Stories

Technology
Build #2612