Nvidia to acquire open-source AI platform Hugging Face for nearly $13 billion
Nvidia has announced a deal to acquire Hugging Face, the popular open-source AI hosting platform, for $12.93 billion. The chipmaker pledges the platform will remain open to the entire AI ecosystem.
Nvidia, the world's largest AI chipmaker, has officially confirmed a deal to purchase Hugging Face, one of the most widely used platforms for hosting open-source AI models, datasets, and developer tools. The acquisition is valued at $12.93 billion.
Founded in 2016, Hugging Face has grown into what many describe as the "GitHub of AI," offering a browsable library of open-source machine learning models and emphasizing collaboration among developers worldwide.
In announcing the deal, Nvidia CEO Jensen Huang said the companies intend to scale Hugging Face's platform, strengthen its infrastructure, and expand AI access for developers and institutions globally. He stressed that Hugging Face will remain an open platform, allowing developers to freely choose their preferred models, frameworks, cloud providers, and computing platforms — with no requirement to use Nvidia hardware.
Speculation before the announcement
Rumors of a possible acquisition first surfaced on August 23rd, when Business Insider reported that Hugging Face was working with a bank to explore a sale valued around $13 billion. Days later, the same outlet reported that Nvidia had been in acquisition talks with the startup for roughly a week, while The Information separately claimed a $12.9 billion agreement had already been reached.
Strategic stakes
The deal comes as open-source AI developers race to keep pace with closed-source systems, giving Nvidia a strategic foothold in the space at a time when closed AI providers such as OpenAI, Anthropic, and Google are developing their own chips to reduce reliance on Nvidia hardware.
Hugging Face's last official valuation was $4.5 billion, set during a 2023 funding round that Nvidia itself took part in. The startup had reportedly turned down an earlier $500 million investment offer from Nvidia that would have valued it at $7 billion, citing concerns about becoming too dependent on a single dominant investor.
Despite its high price tag, Hugging Face is not a major revenue generator, reportedly bringing in around $150 million in annualized revenue — a small fraction of the purchase price. Still, as the world's most valuable public company, Nvidia appears willing to spend heavily to secure its position in the AI industry.
