Nvidia reportedly agreed to acquire open-source AI platform Hugging Face for $12.9 billion. This transaction represents one of the largest acquisitions in Nvidia's history. The deal grants the chipmaker control over a central repository for AI models and datasets. This move strengthens Nvidia's position beyond hardware to expand its influence across the entire AI stack.
The purchase price represents a significant premium over Hugging Face's $4.5 billion valuation from 2023. Nvidia previously participated as an investor in that 2023 funding round. Hugging Face reportedly rejected a $500 million investment from Nvidia in January. That rejected offer would have valued the startup at $7 billion. The acquisition provides Nvidia direct access to a vast community of developers building and sharing open-source AI models.