Nvidia Closes In on Hugging Face Acquisition in Deal Valued Around $13 Billion

Nvidia is reportedly closing in on an acquisition of Hugging Face, one of the most widely used platforms for sharing and downloading open-source AI models. According to multiple reports, the chipmaker has agreed to buy the company for about $12.9 billion, though some accounts note that a final signed agreement may not yet be in place and talks could still change.The potential deal would rank among Nvidia’s largest acquisitions and would give the company a major position in the open-source AI ecosystem.Details of the Reported DealThe Information reported that Nvidia has agreed to the $12.9 billion purchase. Business Insider, which earlier noted that Hugging Face was receiving takeover interest, said discussions valued the company at more than $13 billion but that the talks had not produced a completed agreement and could still fall apart.Neither Nvidia nor Hugging Face has publicly confirmed the reports.Hugging Face, founded in 2016, serves as a central hub where developers upload, share, and access open-weight models, datasets, and tools. It has become an essential resource for researchers and companies working with open-source large language models.Valuation Jump and Prior RelationshipThe reported price represents a substantial increase from Hugging Face’s last known valuation of $4.5 billion following a $235 million funding round in 2023. That round included participation from Nvidia, along with Salesforce Ventures, Alphabet’s GV, and IBM Ventures.Hugging Face previously declined a $500 million investment offer from Nvidia late last year that would have valued the company at $7 billion. At the time, the company indicated it did not want a single dominant investor that could influence its direction.The company has seen strong growth, with recent reports citing annualized revenue of around $150 million and progress toward profitability.Strategic RationaleAcquiring Hugging Face would give Nvidia a foothold in the distribution and developer layer of AI, beyond its dominant position in GPUs and related hardware and software. As leading closed-source AI labs such as OpenAI, Anthropic, and others explore or develop their own custom chips, control of a major open-source platform could help Nvidia stay central to how models are built, shared, and deployed.The move aligns with Nvidia’s broader efforts to expand its software and ecosystem presence. Hugging Face’s community and tools play a key role in the open-source AI movement, which continues to advance rapidly alongside proprietary systems.Microsoft had also held talks with Hugging Face, according to reports, though those discussions were not described as ongoing.Broader ContextThe potential acquisition comes as competition intensifies across the AI stack—from chips and infrastructure to models and developer platforms. Open-source models have gained significant traction, and Hugging Face sits at a critical junction where developers choose and experiment with those models.If completed, the deal would place one of the primary venues for open AI development under the ownership of the company that already supplies much of the underlying compute infrastructure.What Comes NextAs of the latest reports, the transaction has not been officially announced by either company. Any final agreement would likely face regulatory review given the size of the deal and Nvidia’s existing market position.