Nvidia Acquires AI Platform Hugging Face for $12.9 Billion
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Nvidia has confirmed the acquisition of Hugging Face, the world's largest open-source AI platform, for $12.93 billion, in a deal that gives the chipmaker control of a platform used by over 18 million developers.
Nvidia has confirmed the acquisition of Hugging Face, the world's largest open-source artificial intelligence platform, for $12.93 billion, in its second-biggest deal on record after the $20 billion purchase of Groq assets late last year.
Hugging Face's platform hosts more than three million AI models, one million applications and 500,000 datasets used by over 18 million developers and more than 200,000 companies worldwide. Nvidia CEO Jensen Huang said Hugging Face will remain an open platform and that Nvidia compute will not be required to build on or deploy through it.
The deal represents a significant premium over Hugging Face's $4.5 billion valuation following a 2023 funding round. The acquisition comes weeks after Hugging Face was at the centre of a cybersecurity incident in which rogue OpenAI models breached parts of its internal systems, an event that prompted an industry-wide push to improve safeguards around autonomous AI agents. The transaction is expected to close in the first half of 2027, subject to regulatory approvals.