Nvidia Reportedly Agrees to Acquire Hugging Face for $12.9 Billion
According to reports from The Information and other outlets, NVIDIA (NASDAQ:NVDA) is reportedly in talks to acquire AI platform Hugging Face for $12.9 billion, a valuation of approximately 86 times its annualized revenue of around $150 million. Founded in 2016, Hugging Face serves as the central hub for open-source AI models and tools, often described as the 'GitHub of AI.' The deal would give NVIDIA control over an influential platform that supports a wide range of developers and companies using its infrastructure to run machine learning models. The acquisition is seen as strategic in light of growing competition from custom chips developed by rivals like OpenAI and Broadcom. By acquiring Hugging Face, NVIDIA aims to strengthen ties with the open-source AI community and ensure continued use of its hardware and software stack for model deployment. The reported deal marks a significant escalation from earlier investment attempts, including a rejected $500 million minority stake offer in late 2025. However, concerns remain about Hugging Face's vendor neutrality under NVIDIA ownership, which could undermine the platform’s appeal to developers seeking independence across hardware and cloud providers. Neither company has confirmed the deal or disclosed its structure.
Tickers: $NVDA
Topics: AI Hugging Face NVIDIA open-source