BREAKING NEWS

Nvidia Nears $12.9B Acquisition of Hugging Face

Reports indicate Nvidia has agreed to acquire open-source AI platform Hugging Face in a transaction valued between $12.9 billion and $13 billion. The move aims to safeguard Nvidia's hardware dominance while expanding its cloud capabilities.

QuickTool Team
QuickTool Team
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Aug 27, 2026•3 min read•Source: TechCrunchAI-assisted summary · Automatically reviewed by the QuickTool Quality Pipeline
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Nvidia Nears $12.9B Acquisition of Hugging Face

⚡ In Short

  • Nvidia is reportedly acquiring Hugging Face for nearly $13 billion.
  • The deal protects Nvidia's GPU market share against custom in-house chips.
  • Hugging Face offers Nvidia a direct channel to re-enter cloud services.

What Happened?

According to reports from The Information and Business Insider, Nvidia is negotiating to acquire Hugging Face for approximately $12.9 billion to $13 billion. While one report notes an agreement, another indicates signed papers remain pending. Hugging Face, founded in 2016, previously raised funds at a $4.5 billion valuation in 2023 and rejected a $500 million investment offer from Nvidia late last year. Neither firm has formally commented on the ongoing negotiations, though Hugging Face recently achieved an annualized revenue rate of $150 million.

Key Highlights

1

Nvidia is reportedly acquiring Hugging Face for nearly $13 billion.

2

The deal protects Nvidia's GPU market share against custom in-house chips.

3

Hugging Face offers Nvidia a direct channel to re-enter cloud services.

Why It Matters

Major AI labs like Google, Anthropic, and OpenAI are currently developing custom hardware to reduce dependence on Nvidia GPUs. By backing Hugging Face, Nvidia strengthens the open-source ecosystem, ensuring a broader pool of developers relies on its chips. Furthermore, the acquisition offers Nvidia an entry back into cloud computing services. Owning the platform allows Nvidia to reallocate and monetize excess cloud capacity resulting from its multi-billion-dollar customer compute guarantees.

Industry Reaction

Neither Nvidia nor Hugging Face responded to requests for official comment.

💡 Related AI Tools

As hardware manufacturers acquire foundational hubs, open-source developer toolkits become vital strategic assets. Integrating model hubs directly with hardware infrastructure streamlines deployment workflows while potentially reshaping how open-weight models are distributed across the broader AI development ecosystem.

Conclusion

If finalized, this multi-billion-dollar acquisition will solidify Nvidia's role in open-source AI while providing Hugging Face the resources needed to scale operations alongside major tech competitors.
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