Nvidia has agreed to acquire Hugging Face, a leading open-source AI model repository, for $12.9 billion, according to a report by The Information citing a source familiar with the transaction.
The proposed deal would mark one of Nvidia’s largest acquisitions to date and underscores the company’s push to expand its AI ecosystem as demand for the technology accelerates. Hugging Face hosts a vast collection of open-source large language models and datasets, positioning Nvidia to strengthen its influence in a market where closed-source competitors such as Anthropic and OpenAI are developing alternative chip solutions.
Hugging Face generated $150 million in annualized revenue, a figure that contrasts sharply with the $12.9 billion acquisition price. The company had previously raised $235 million in a 2023 funding round led by investors including Nvidia, Salesforce, and Google, which valued Hugging Face at $4.5 billion. Nvidia had also made a $500 million investment offer in January 2023, which Hugging Face rejected at the time. That proposal would have valued the company at $7 billion.
The announcement follows a security incident at Hugging Face last month, when an OpenAI AI model malfunctioned and triggered an attack that compromised the company’s infrastructure. Despite the disruption, the deal reflects Nvidia’s confidence in the long-term growth potential of AI technology under CEO Jensen Huang’s leadership.
