Nvidia's $12.93 Billion Hugging Face Deal Draws Antitrust Scrutiny as Oracle Buildout Takes Shape
Published on 11/07/2026 at 10:41 | Editorial boerse-global.de
Nvidia shares climbed 3.2% in the previous session, riding a broad recovery across semiconductor names after a sharp selloff in AI-related stocks. The rebound came on the heels of Thursday's heavy selling pressure, which Reuters linked to investor worries that a Democrat-led Congress could push through stricter AI rules and slow data-center construction. Those concerns reflected the broader sector backdrop rather than any enacted regulation.
Washington's Shadow Reaches Two Fronts
Regulatory questions now touch more than the political mood. Reuters reported on October 28 that the U.S. Department of Justice has inquired about the competitive implications of Nvidia's planned acquisition of Hugging Face, a deal carrying a $12.93 billion price tag. Nvidia is the buyer; Hugging Face is the target. Completion is expected in the first half of 2027, though the transaction remains contingent on regulatory approval.
Oracle Expansion Anchors the Operating Story
On the business side, Nvidia and Oracle announced on October 27 that they will expand Oracle Cloud Infrastructure's superclusters using NVIDIA Vera Rubin NVL72 systems, with plans on the order of multiple gigawatts. NVIDIA Vera CPUs are also set to enter OCI. According to the companies, Vera Rubin NVL72 systems and Vera CPUs were already generally available on OCI.
Should investors sell immediately? Or is it worth buying Nvidia?
The scale of the planned buildout and the addition of further Nvidia technology to Oracle's infrastructure together give the announcement weight for investors. How much economic substance it carries will depend on how the partners execute the steps they have outlined.
Supply Chain Commitments Add Another Layer
Earlier, on October 21, Nvidia and its partners announced capacity expansions across the supply chain, covering substrates, packaging, testing and optical components. As part of those agreements, Nvidia said it is extending a $1.1 billion advance to King Yuan Electronics to reserve capacity.
November 17 Becomes the Real Test
Nvidia has scheduled its third-quarter fiscal 2027 earnings call for November 17, 2026. The quarter ended October 25. That date gives investors a concrete checkpoint against which to measure their expectations for the business.
Taken together, the picture supports cautious optimism. Sector-wide relief helps, and the Oracle project offers a tangible outlook, while the Hugging Face review and the supply chain commitments round out a busy stretch of dealmaking and expansion. The earnings report will show whether the numbers back up the announced plans.
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