Nvidia is in advanced talks to acquire Hugging Face, a prominent U.S.-based open-source AI model platform, for approximately $12.9 billion, according to a report from industry publication The Information on Thursday.
The proposed acquisition would mark one of the largest deals in Nvidia's history under CEO Jensen Huang. Neither Nvidia nor Hugging Face has publicly commented on the matter. Hugging Face operates as a central hub for AI developers, offering tools and repositories for open-source machine learning models.
The deal comes as Nvidia strengthens its position in the artificial intelligence ecosystem. Competitors such as OpenAI and Anthropic are developing proprietary chips to reduce reliance on Nvidia's hardware, which remains foundational for AI model training and deployment. Hugging Face reported annual revenue of $150 million in its latest fiscal year.
Nvidia has prior ties to Hugging Face, having participated in a $4.5 billion funding round in 2023 that valued the platform at $4.5 billion. The chipmaker has benefited significantly from the AI boom, posting record revenue of $96.22 billion in its most recent quarter, more than double the prior-year period. For the current quarter, Nvidia forecasts revenue of about $108 billion.
Beyond acquisitions, Nvidia is expanding its infrastructure initiatives, including a partnership with Amazon to mobilize over $500 billion in funding for additional data center construction with financial investors.
