Archive · 27 Aug 2026
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.
- When
- The acquisition report was published on Wednesday, after reports that Hugging Face had explored a possible sale two days earlier.
- Where
- Hugging Face is based in New York and operates its open-source AI platform.
- Why
- The deal would strengthen Nvidia’s position in open-source AI and broaden its role beyond hardware, while competition over AI chips intensifies.
- 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
