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US Justice Department Probes Nvidia's Hugging Face Deal

According to Reuters sources, the DOJ has asked how the Hugging Face acquisition could affect competitors.

12.9 billion dollars

US Justice Department Probes Nvidia's Hugging Face Deal

The US Department of Justice (DOJ) is reportedly examining Nvidia's acquisition of Hugging Face, according to Reuters sources. Reuters first reported the inquiry on Wednesday, citing sources; this is attributed to Reuters and should not be read as an official DOJ statement. CNBC says it confirmed the probe with a person familiar with the matter who asked not to be named. Nvidia declined to comment, according to CNBC.

What is at stake

Nvidia announced the Hugging Face acquisition in September for nearly $13 billion. According to CNBC, the DOJ has asked Nvidia for information on how the deal could affect competitors. Hugging Face runs a widely used open-source platform for hosting and testing AI models and sells infrastructure and collaboration tools to the tech industry. According to Nvidia, more than 18 million people and over 200,000 companies use the platform, which Nvidia says hosts at least 3 million models and 500,000 datasets.

Context

For you, the key point is that the review raises questions about how access to open AI model platforms may be organised in future.

Sources

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