Nvidia wants to own the hugging face. The DOJ wants to know why.
Not the emoji. The company. Hugging Face hosts AI models for more than 18 million people, according to Nvidia's own press statement. Jensen Huang said the deal would "expand access to AI for developers and institutions worldwide." Access. Through the company that sells the shovels, the map, and now the hole.
The Justice Department asked whether Nvidia could "capture a fundamental distribution point for AI," per Reuters. That is a polite way of asking if Jensen bought the only door and plans to charge admission.
Nvidia says Hugging Face will keep working with other chipmakers. Every landlord says the rent won't change.
The probe is not new. It reportedly began under Biden and survived Trump. Two administrations agreed on one thing. Impressive.
Nvidia stock slipped 1.7% on the news. Retail traders felt that in their souls. Then they bought more, because a 1.7% dip on a company this size is just Jensen letting you in early.
Nvidia also paid a reported $20 billion for Groq, but structured it as a license plus hiring the executives. The DOJ has reportedly examined whether that structure dodged merger review. Buying a company without buying the company. Bold. Like marrying someone's entire personality and calling it a friendship.
The deal isn't expected to close until the first half of 2027. That is plenty of time for lawyers to bill, regulators to squint, and your cousin to tell you Nvidia is "basically a utility now."
Nothing here changes the chart. The chart doesn't know what a hugging face is. Neither do you.
Nvidia spent $12.9 billion on a company named after an emoji, and the government is the only one asking for a receipt.
Photo by Mariia Berezovsky on Unsplash
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