Nvidia Acquires Hugging Face in $12.93 Billion Deal
Nvidia has agreed to acquire Hugging Face, a popular open-source AI platform often compared to GitHub, for $12.93 billion. The deal marks one of the largest acquisitions in the AI space and brings together two major players: Nvidia, known as the world's leading AI chipmaker, and Hugging Face, which provides an online repository where developers share machine learning models and datasets. Speculation about a potential acquisition began earlier this month when reports surfaced that Hugging Face was exploring sale options. The company had previously rejected a $500 million investment from Nvidia in 2023 at a valuation of $7 billion, but the latest deal significantly exceeds its last official valuation of $4.5 billion. While Hugging Face is not yet a major revenue generator—reportedly earning around $150 million annually—the acquisition underscores Nvidia's strategic move to strengthen its position in AI development and hardware dominance as closed-source providers like OpenAI, Anthropic, and Google develop their own chips.
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Topics: AI Hugging Face Nvidia open source