Nvidia closes in on Hugging Face acquisition
Nvidia has reportedly agreed to buy Hugging Face, the popular open-source AI hub, for $12.9 billion in a move that would let Nvidia both protect its chip empire and jump back into the cloud business.
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Nvidia has agreed to acquire Hugging Face, a major hub where developers share and download open-source AI models, for approximately $12.9 billion, though the deal has not yet been formally signed. The acquisition matters because it would give Nvidia a strong position in open-source AI at a time when major AI companies are building their own chips to reduce dependence on Nvidia's hardware, and because owning Hugging Face could help Nvidia re-enter the cloud computing market and manage excess computing capacity it has committed to customers. The deal marks a significant increase from Hugging Face's previous valuation of $4.5 billion in 2023, and the company has previously rejected a $500 million investment offer from Nvidia that would have valued it at $7 billion.
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