Nvidia has agreed to acquire Hugging Face for $12.9 billion, giving the world’s dominant AI chipmaker control of one of the most important platforms for open-source AI models, according to The Information.
Hugging Face is often described as the “GitHub of AI.” Its platform allows developers and companies to share, download and build on AI models and datasets. The startup was valued at $4.5 billion in 2023, meaning Nvidia is paying nearly three times that valuation.
Why Nvidia Wants Hugging Face
The deal goes beyond simply buying another AI company. Nvidia wants open-source AI to remain a strong alternative to closed models from OpenAI and Anthropic.
That matters because major closed-model developers are increasingly working on their own AI chips to reduce dependence on Nvidia. Supporting a large ecosystem of open models, many of which run on Nvidia hardware, could help protect demand for the company’s GPUs. Nvidia has also been investing heavily in its own Nemotron open models.
The price is striking given Hugging Face’s relatively small business. The company generates only about $150 million in annual revenue, according to Reuters, putting the $12.9 billion purchase price at roughly 86 times revenue.
There is also a potential challenge. Hugging Face has built its reputation as a relatively neutral platform supporting models and hardware from across the AI industry, including Nvidia competitors such as AMD and Intel. Nvidia ownership could raise questions about whether that neutrality can continue.
