CONNECT WITH US
Fintech

Fintech

DOJ Probes Nvidia’s Hugging Face Deal Over AI Competition Concerns

PYMNTS – Fintech logo

Published on

Add as a preferred source on Google
DOJ Probes Nvidia’s Hugging Face Deal Over AI Competition Concerns

The Justice Department is looking into whether Nvidia’s deal to acquire Hugging Face could harm competition in the artificial intelligence industry by giving the company a control of a key distribution point, Reuters reported Wednesday (Oct. 28), citing unnamed sources.

Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

The inquiries the Justice Department has made about the acquisition are part of a larger investigation into Nvidia’s conduct that agency began during the Biden administration and has continued during the Trump administration, according to the report.

For the wider investigation, the agency has been asking about Nvidia’s other acquisitions, investments, sales practices and whether it pressures its customers, per the report.

An investigation is not evidence of wrongdoing and may not result in lawsuits, the report said.

The Justice Department and Nvidia both declined Reuters’ request for comment on the claims, per the report.

Nvidia has said in the past that after its acquisition, Hugging Face would continue to work with a variety of chip, cloud and AI companies, according to the report.

Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

CNBC reported Wednesday that it confirmed the probe with an unnamed source after the Reuters report was published.

Bloomberg said Wednesday that it reported in September that the Department of Justice was looking into whether Nvidia structured its licensing agreement with AI chip startup Groq in a way that would avoid antitrust review.


Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.