Nvidia Reportedly Agrees to Acquire Hugging Face for $12.9 Billion

Nvidia has reportedly agreed to acquire Hugging Face for $12.9 billion, according to a report from The Information, marking a potentially significant expansion of the chipmaker's position in the open-source AI ecosystem.

The reported transaction would bring one of the world's most widely used platforms for sharing, discovering and deploying open-source AI models and datasets under Nvidia's ownership.

The development follows earlier reports that Hugging Face was exploring acquisition interest at a valuation of more than $13 billion. At the time, no buyer had been identified and no deal had been reached.

A Strategic Bet on Open-Source AI

Hugging Face has become a central platform for developers and researchers working with open-source AI. Its ecosystem enables users to share, discover, test and deploy machine learning models, datasets and related tools.

For Nvidia, acquiring the platform would extend its influence beyond GPUs and computing infrastructure into the software and developer layer of AI.

The strategic logic is closely tied to the growing importance of open models. Nvidia has invested heavily in developing and supporting open-source AI models, while much of the open-source AI ecosystem continues to run on Nvidia hardware.

An acquisition of Hugging Face could therefore give Nvidia a stronger connection with the developers and organizations building on those models.

Bringing AI Models and Compute Closer Together

The reported deal could also strengthen Nvidia's position in AI cloud computing.

Hugging Face already provides infrastructure that allows developers to run AI models using rented computing resources. According to TechCrunch, ownership of the platform could give Nvidia a route back into cloud computing after scaling back aspects of its own DGX Cloud business.

The combination would bring together three increasingly connected layers of the AI stack: computing hardware, AI models and the developer ecosystem around those models.

That could make Hugging Face strategically valuable well beyond its direct revenue.

A Major Jump in Hugging Face's Valuation

The reported $12.9 billion price would represent a substantial increase from Hugging Face's last publicly known valuation.

The company raised $235 million in 2023 in a funding round that valued it at approximately $4.5 billion. Nvidia participated in that round alongside investors including Salesforce Ventures, Alphabet's GV and IBM Ventures.

Reuters reported that Hugging Face generates approximately $150 million in annual revenue, highlighting the premium Nvidia would potentially be paying for the platform's strategic position within the AI ecosystem.

Deal Status Remains Subject to Confirmation

While The Information has reported that Nvidia agreed to acquire Hugging Face for $12.9 billion, the status of the transaction has not been formally confirmed by either company.

Business Insider reported that negotiations had not yet resulted in a signed agreement and that the discussions could still fall apart.

For now, the reported transaction should therefore be viewed as a potential acquisition rather than a formally announced deal.

If completed, however, the transaction would represent one of Nvidia's most significant acquisitions and another clear indication of how the company is expanding its influence across the broader AI stack.