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Nvidia in discussions to acquire AI platform Hugging Face for $13 billion

The reported deal would expand Nvidia's reach in open-source artificial intelligence models, though analysts cite potential risks to Hugging Face's platform neutrality.

The short version

  • Nvidia is reportedly in advanced discussions to purchase open-source AI platform Hugging Face for around $12.9 billion to $13 billion.
  • The acquisition would deepen Nvidia's presence in software distribution and open-source AI modeling alongside its hardware infrastructure business.
  • The deal remains unconfirmed, with neither company immediately issuing an official response to the reports.

Key facts

  • Nvidia is in talks to acquire AI model repository Hugging Face for approximately $12.9 billion to $13 billion.[Ars Technica · Business Insider]
  • Hugging Face functions as a cloud platform where developers search, download, run, and fine-tune open-source AI models.[Ars Technica]
  • Nvidia previously participated in a $235 million funding round for Hugging Face in 2023 and currently distributes its Nemotron open models on the platform.[Business Insider]
  • Hugging Face previously received investment interest from other companies, including Salesforce, Google, and Microsoft.[Ars Technica]

What remains uncertain

  • The acquisition has not been finalized and could face obstacles or collapse before an agreement is reached.[Ars Technica]
  • Neither Nvidia nor Hugging Face immediately responded to requests for comment regarding the transaction.[Business Insider]

Sources