NVIDIA Agrees to Acquire Hugging Face for $12.9 Billion
Nvidia has agreed to acquire open-source AI platform Hugging Face for $12.9 billion, marking its second-largest acquisition after the $20 billion purchase of Groq's assets in December 2023. The deal aims to expand Nvidia’s presence beyond hardware and further up the artificial intelligence stack. CEO Jensen Huang emphasized that the move will scale Hugging Face's platform while maintaining it as an open ecosystem for developers globally. Hugging Face, known for its role in advancing AI through open-source models, recently faced a cybersecurity incident attributed to engineering errors. The company used an Nvidia-powered Chinese model to resolve the issue. CEO Clément Delangue expressed confidence that NVIDIA would be a suitable home for Hugging Face's future development and community. The acquisition underscores Nvidia’s strategic shift toward becoming more than just a chipmaker, capitalizing on its position as one of the world’s most valuable companies due to high demand for AI-related hardware.
Tickers: $NVDA