Nvidia Agrees to Acquire Hugging Face for $12.93 Billion
Nvidia is acquiring AI developer platform Hugging Face to gain visibility into AI architectures and counter competition from chip-developing customers and Chinese labs.
Nvidia agreed to acquire Hugging Face, a New York-based developer platform for open AI models, for $12.93 billion on September 3, 2026. The transaction includes approximately $11.9 billion for investors and a $1 billion equity-based retention program for employees.
Chief Executive Jensen Huang pledged that Hugging Face will remain an open platform and will not require Nvidia chips for deployment. The acquisition allows Nvidia to track developer preferences and trending AI architectures, a strategic move to compete with major American and Chinese labs.
The deal comes as primary customers, including Meta, OpenAI, and Microsoft, develop proprietary AI chips to decrease their reliance on Nvidia processors. Simultaneously, Nvidia faces increasing competition from Chinese open-weight model developers such as DeepSeek, Moonshot, and Z.ai, while the Trump administration continues discussions regarding restrictions on Chinese AI models.
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