Nvidia to Acquire Hugging Face for $13 Billion
Nvidia CEO Jensen Huang announced a $12.9 billion acquisition of open-source AI platform Hugging Face, aiming to strengthen the company's position in the growing artificial intelligence ecosystem. The deal comes after previous attempts by Nvidia to invest in Hugging Face were rejected at lower valuations. Hugging Face is widely used by developers and researchers for hosting pre-trained models, datasets, and code libraries related to AI development. With over 18 million users across more than 200,000 companies, the platform plays a critical role in open-source AI innovation. Nvidia's acquisition strategy reflects its desire to maintain dominance as closed-source labs like OpenAI and Anthropic develop their own chips. While Hugging Face generates only $150 million annually in revenue, its strategic value lies in supporting an ecosystem that remains agnostic about hardware choices—potentially helping Nvidia retain market share even if competitors shift away from its technology.
Tickers: $NVDA
Topics: AI Hugging Face Nvidia open-source platforms