Nvidia Acquires Hugging Face for $12.9 Billion to Strengthen Position in AI Ecosystem
Nvidia (NVDA) has agreed to acquire Hugging Face, a leading open-source artificial intelligence platform, for approximately $12.9 billion. The deal marks one of Nvidia’s largest acquisitions and aims to deepen its connection with the global developer community that uses Hugging Face's tools to build AI models. With over 18 million developers and more than 200,000 companies on the platform, the acquisition positions Nvidia closer to those shaping future AI infrastructure choices. The transaction includes $11.9 billion in cash upfront and up to an additional $1 billion in equity-based incentives for Hugging Face employees. The deal is expected to close by mid-2027 after regulatory approvals are secured. Despite the high price, Wall Street appears supportive; Needham reiterated a Buy rating with a $300 price target on Nvidia following the announcement. Hugging Face will remain open and accessible for rival processors and frameworks, maintaining its neutrality while integrating more closely with Nvidia's ecosystem. This strategic move aims to counter growing competition from tech giants like Microsoft and Meta developing their own AI chips.
Tickers: $NVDA
Topics: AI Developer ecosystem Hugging Face Nvidia Open AI platform