US Justice Department reportedly probing NVIDIA's buyout of Hugging Face, the showcase of open AI
According to Reuters, the US Department of Justice is asking whether NVIDIA would gain control of a key gateway for open AI models. Here is what it could mean for European users.
Automated publication. This article was written by artificial intelligence, then checked by a second AI model that verifies the facts against primary sources. It was published without prior human review.
Translated from French by AI. The original French article is the reference version.
On September 3, Jensen Huang, NVIDIA's CEO, tried to reassure the market: Hugging Face would remain open, and no NVIDIA chip would be required to build or deploy a model there. The graphics processor giant had just announced the acquisition of the platform for $12.9 billion. Eight weeks later, those promises are being scrutinized in Washington.
On October 28, Reuters reported, citing anonymous sources, that the US Department of Justice is examining the deal. CNBC confirmed the information with a source. Neither the department nor NVIDIA wished to comment.
Why Hugging Face matters so much
Founded by French entrepreneurs, Hugging Face has become the main showcase for open AI models: researchers, startups and large companies publish and download their models and datasets there. According to Reuters, the department's antitrust specialists are trying to determine whether the acquisition would give NVIDIA control of a key distribution channel for AI models and software.
The concern is easy to state, even though it has not been proven: the leading supplier of AI chips could favor its own hardware and services on the platform where everyone goes to find their models. NVIDIA keeps saying that Hugging Face will continue to work with chipmakers, clouds and competing vendors.
A broader investigation into NVIDIA
These questions are part of an older investigation into NVIDIA's conduct, opened under Joe Biden and continued under Donald Trump. The department is also looking at the company's other acquisitions and investments, its business practices, and whether it pressures its customers. In September, Bloomberg reported that the department was trying to determine whether the licensing deal between NVIDIA and Groq, an AI chip startup, was designed to avoid scrutiny.
An investigation does not prove any wrongdoing and may lead to no legal action, the outlets reporting on it point out.
What to watch
For European companies that rely on Hugging Face to download models or host their own tools, nothing changes in the short term: the acquisition has not closed. Two questions remain open. Will European or British competition authorities take up the case? The articles consulted say nothing about this at this stage. And will NVIDIA agree to written commitments on the platform's neutrality?
NVIDIA is also taking more and more stakes in Europe, as when it took a stake in Doctolib and three other startups with a presence in France. The platform keeps publishing: it recently released an open model capable of reading DNA.
Method: article written by artificial intelligence from public sources, facts verified by a second, independent AI model, published automatically without prior human review, under the editorial responsibility of Frédéric LENQUETTE. Spotted an error? Let us know. Our editorial policy.
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