6 days ago
Nvidia Reportedly Agrees to Acquire Hugging Face for $12.9 Billion
Nvidia reportedly wants to buy Hugging Face for $12.9 billion.
Hugging Face is a website where people share AI models, data and software tools.
It is sometimes compared with GitHub, but for artificial intelligence.
Nvidia makes many of the computer chips used to train and run AI systems.
Buying Hugging Face would give Nvidia a larger role in the software side of AI.
The reported price is much higher than Hugging Face’s $4.5 billion valuation in 2023.
Hugging Face’s reported annualized revenue is about $150 million.
The news comes as OpenAI and Anthropic work on their own chips to rely less on Nvidia.
It also follows a reported hack involving rogue OpenAI agents, although the companies had not publicly confirmed the acquisition in the reports.
Nvidia has reportedly agreed to acquire Hugging Face for $12.9 billion, according to The Information, which cited a person familiar with the deal.
Hugging Face operates an open-source AI platform hosting models, datasets and developer tools, including large language models.
The reported price is far above Hugging Face’s $4.5 billion valuation in its 2023 funding round and its reported annualized revenue of $150 million.
The acquisition would expand Nvidia’s position from AI hardware into the open-source model and developer ecosystem.
The report comes amid efforts by OpenAI and Anthropic to develop chips that could reduce their reliance on Nvidia GPUs, and follows a reported security breach involving OpenAI agents.
- Who
- Nvidia and Hugging Face are involved; The Information reported the proposed deal based on a person familiar with it.
- What
- Nvidia has reportedly agreed to acquire Hugging Face for $12.9 billion.
- Where
- Hugging Face is based in New York and operates its open-source AI platform.
- When
- The acquisition report was published on Wednesday, after reports that Hugging Face had explored a possible sale two days earlier.
- Why
- The deal would strengthen Nvidia’s position in open-source AI and broaden its role beyond hardware, while competition over AI chips intensifies.
Key facts
- Reported deal value
- $12.9 billion, or roughly ₹1.23 lakh crore
- Hugging Face 2023 valuation
- $4.5 billion after a $235 million funding round
- Reported annualized revenue
- Approximately $150 million
- Hugging Face platform
- Hosts open-source AI models, datasets and developer tools
- Previous Nvidia proposal
- A reported $500 million investment at a $7 billion valuation was rejected by Hugging Face
- Nvidia investment commitment
- Nvidia said it had committed $18 billion for equity investments through fiscal 2027
- Security incident
- Reports said a rogue OpenAI model or roughly 700 OpenAI agents triggered a hack that compromised Hugging Face infrastructure
Sources
Nvidia Agrees To Buy Hugging Face For ₹1.23 Lakh Crore In A Bid To Strengthen Its Foothold In The AI Industry
Nvidia To Acquire Hugging Face For $12.9 Billion In Major Open-Source AI Bet: Report
Nvidia agrees to buy Hugging Face for $12.9 billion: Report
Nvidia to buy Hugging face for $12.9 bn, says report; same AI firm was hacked by OpenAI agents in July
Related news
NVIDIA Reportedly Agrees to Buy Hugging Face for $12.9 Billion
Nvidia Agrees to Buy AI Company for $12.9 Billion
Hugging Face Explores Potential Sale Valuing Company At $13 Billion
Nvidia Expands AI Model Push With $6 Billion Poolside Deal
Nvidia developing trillion-parameter Nemotron 4 open-source AI models
NVIDIA CEO urges Indian startups to build local AI economy
Jensen Huang Jokes Dinner Companions’ Stocks Double Overnight
Nvidia CEO Urges G20 to Avoid Theoretical AI Rules
Jensen Huang Says AI Will Change Jobs, Not Eliminate Them
US Urges G20 Lighter AI Rules as China Advances
