San Francisco: Nvidia has reportedly agreed to acquire open-source artificial intelligence platform Hugging Face for $12.9 billion, in a deal that could significantly strengthen the chipmaker’s presence across the rapidly expanding AI ecosystem.
According to The Information, Nvidia reached an agreement to buy Hugging Face after the platform attracted acquisition interest from another potential buyer. Business Insider had separately reported that Nvidia was in talks to acquire the company and that Hugging Face had been working with a bank to assess interest from prospective bidders.
A source familiar with the matter told CNBC that the acquisition had been part of “ongoing and recent talks.” However, neither Nvidia nor Hugging Face immediately responded to requests for comment, leaving the reported deal awaiting official confirmation.
Hugging Face has emerged as one of the most widely used platforms for developers working with open-source AI. Its platform enables users to share, test and collaborate on AI models and tools. If completed, the acquisition would give Nvidia greater control and influence over a crucial part of the AI software and model ecosystem, complementing its dominant position in AI computing hardware.
The reported acquisition also fits Nvidia’s broader strategy of expanding beyond chips and establishing a presence across the entire AI technology stack. Fund manager Siddy Jobe of Eonopolis Exponential Technologies said Hugging Face could be a natural fit for Nvidia because of the chipmaker’s growing focus on both open- and closed-source AI models.
The development comes after Nvidia reported blockbuster earnings, which sent its shares higher in after-hours trading. The company has also pursued other AI-related deals, including a reported $20 billion licensing agreement with AI chip startup Groq.
Hugging Face has recently faced cybersecurity concerns following a hacking incident. CEO Clément Delangue attributed the attack to engineering mistakes and said the company used an Nvidia version of a Chinese open-source model while responding to the incident.
The reported $12.9 billion acquisition, if completed, would mark another major step in Nvidia’s push to become a central player not only in AI hardware but also in the software, models and developer communities powering the technology.
