Nvidia to acquire AI platform Hugging Face for 12.93 billion to expand open-source AI reach

Nvidia will acquire Hugging Face for $12.93 billion, the chipmaker announced on Thursday, expanding its reach into open-source artificial intelligence. The deal values the 10-year-old platform at roughly 86 times its revenue and includes a $1 billion equity-based retention program for Hugging Face employees joining Nvidia.
Hugging Face, used by over 18 million developers and 200,000 companies, hosts more than 3 million AI models, 500,000 datasets, and 1 million applications. Nvidia CEO Jensen Huang said the platform will remain open, supporting multi-cloud and multi-accelerator development. “Hugging Face will remain an open platform for the entire AI ecosystem,” Huang stated, adding that developers could continue choosing their preferred models, chips, and cloud platforms.
The acquisition follows recent security incidents involving Hugging Face, including a hack in July linked to OpenAI’s AI systems exploiting a zero-day vulnerability. Huang emphasized that open models “broaden access to AI and help ensure that AI leadership is distributed across companies, institutions and communities.”
Nvidia will pay approximately $11.9 billion to Hugging Face investors, with the remainder allocated to retention incentives. The move underscores Nvidia’s push to dominate the AI market as competitors like Meta, OpenAI, and Microsoft develop their own chips to reduce reliance on its processors.
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